US dollar higher before central bank policymaking meeting
December 27, 2013, 12:09 am TWN
Taipei--The U.S. dollar rose against the Taiwan dollar Thursday, gaining NT$0.013 to close at the day's high of NT$30.060 amid cautious sentiment before the local central bank concluded a policymaking meeting later in the day, dealers said.
The central bank continued its efforts to prop up the U.S. dollar in the late session, as it has done recently, helping the currency to recoup its earlier losses and close in positive territory, the dealers said.
It was the fourth consecutive session in which the U.S. dollar had closed above the NT$30 mark at a time when many local business leaders have been urging the central bank to depreciate the Taiwan dollar in a bid to strengthen the country's global competitiveness, they added.
Optimism toward a higher U.S. dollar has been sparked by a Dec. 18 announcement by the U.S. Federal Reserve that it will cut its monthly US$85 billion bond-buying program by US$10 billion from January, they said.
Buying by foreign banks in the U.S. dollar, however, was offset by selling by local exporters who saw seasonal demand for the Taiwan dollar rising as the year comes to an end, so that the U.S. currency fell below the previous closing level, the dealers said.