US dollar ends up at NT$30.039 after reaching day's high
CNATAIPEI -- The U.S. dollar rose against the Taiwan dollar Friday, gaining NT$0.06 to close at the day's high of NT$30.039 as the local central bank intervened to push the greenback back to the NT$30 mark by the end of the session, dealers said.
January 4, 2014, 12:00 am TWN
The central bank's presence helped the U.S. dollar fend off downward pressure against the Taiwan dollar triggered by a rising Japanese yen, which staged a strong technical rebound, they said.
The greenback opened at NT$29.980 and dropped to a low of NT$29.927 before rebounding. Turnover totaled US$802 million during the trading session.
Foreign banks' buying reflected hopes that the Fed will cut its bond buying program further, a move which could push the U.S. dollar higher, they said.
After initial gains in the local foreign exchange market, however, the U.S. dollar faced selling pressure as traders were influenced by a rising yen to raise their holdings in the Taiwan dollar, dealers said.
They said traders were buying into the yen, as they thought that the over 20 percent depreciation of the currency against the U.S. dollar in 2013 was too much, expecting a strong comeback.
However, a weakening local market let some air out of the Taiwan dollar during the session, in particular after foreign institutional investors served as net sellers of NT$2.46 billion (US$81.89 million) worth of local shares to send the weighted index on the Taiwan Stock Exchange down 0.76 percent at the close, dealers said.