US dollar closes higher on Taipei forex, gaining NT$0.005 to end at NT$30.208
May 17, 2014, 12:06 am TWN
TAIPEI -- The U.S. dollar rose against the Taiwan dollar Friday, gaining NT$0.005 to close at NT$30.208 after moving in a narrow range on thin turnover, dealers said.
With the weekend approaching, many traders tended to stay on the sidelines, which kept the session quiet, the dealers said.
The local central bank entered the market again to prop up the U.S. dollar, helping the currency recoup earlier losses caused by the strength of other regional currencies and further foreign institutional buying in the local market, they added.
The greenback opened at NT$30.205 and moved between NT$30.145 and NT$30.214 before the close. Turnover totaled US$455 million during the trading session.
The U.S. dollar opened higher on a mild technical rebound, but fell into the red immediately as traders were encouraged by gains posted by other regional currencies such as the Japanese yen and the South Korean won to pick up the Taiwan dollar, the dealers said.
The yen rose to an almost two-week high against the U.S. dollar after U.S. Federal Reserve Chairwoman Janet Yellen said that Washington has "further to go to achieve a healthy economy."
Yellen's remark sparked speculation that the Fed will continue to maintain high liquidity and keep interest rates low. A loose U.S. monetary policy is expected to create a spill-over effect to prompt foreign investors to put funds into the Asian region, which will boost the value of regional currencies, the dealers said.
The won also appreciated against the U.S. dollar on a technical rebound, which gave more indications to traders to raise their Taiwan dollar holdings, they said.
In the local market, foreign institutional investors stayed on the buy side, serving as net buyers of NT$2.17 billion (US$71.84 million) worth of local shares, boosting demand for the Taiwan dollar, the dealers said.
The low turnover made it easier for the local central bank to intervene and push up the U.S. dollar back to the NT$30.20 level at the close, they said.