US dollar closes higher on Taipei forex at NT$30.235
April 16, 2014, 12:04 am TWN
TAIPEI--The U.S. dollar rose against the Taiwan dollar Tuesday, gaining NT$0.002 to close at NT$30.235 on the back of the local central bank's intervention to reverse the greenback's earlier losses, dealers said.
The central bank took cues from the weakness of the South Korean won to jump into the trading floor and boost the value of the U.S. dollar in a bid to smooth the impact from the Taiwan dollar's appreciation, they said.
The greenback opened at NT$30.240, and moved between NT$30.070 and NT$30.249 before the close. Turnover totaled US$613 million during the trading session.
The U.S. dollar opened higher on follow-through buying but immediately fell to negative territory in the wake of a technical rebound staged by the local market, dealers said.
Foreign institutional investors bought into large-cap electronics stocks throughout the trading session to serve as net buyers of NT$5.72 billion (US$189 million) worth of local shares, a move which boosted demand for the Taiwan dollar, they said.
Local exporters stood on the sell side for the U.S. dollar as they took advantage of the gains posted by the greenback a session earlier to lock in a favorable exchange rate for the Taiwan dollar, they added.
The central bank stepped in after the U.S. dollar fell below the NT$30.10 mark and moved closer to NT$30.00 amid a continued weakness in the won and fears that a rising Taiwan dollar will compromise Taiwan's global competitiveness, dealers said.
The won came under downward pressure against the U.S. dollar as major Korean corporations, such as Samsung Electronics Co., have been paying dividends to foreign investors, they said.
A falling Chinese yuan also prompted the local central bank to cut its Taiwan dollar holdings after the People's Bank of China lowered the yuan's reference rate against the U.S. dollar, dealers said.