Greenback sees decline to NT$30.178 on Taipei forex
May 23, 2014, 12:05 am TWN
TAIPEI--The U.S. dollar fell against the Taiwan dollar Thursday, shedding NT$0.038 to close at NT$30.178 as the domestic market staged a rebound, boosting demand for the local currency, dealers said.
Better-than-expected manufacturing activity data in China encouraged traders to pick up regional currencies, including the South Korean won, which gave a strong indication to traders here to cut their U.S. dollar holdings in exchange for the Taiwan dollar, dealers said.
Amid reduced concerns that the U.S. Federal Reserve will raise interest rates sooner than expected, traders bought into the Taiwan dollar throughout the session, dealers added.
The greenback opened at NT30.216, and moved between NT$30.101 and NT$30.219 before the close. Turnover totaled US$599 million during the trading session.
The U.S. dollar opened flat and immediately fell into negative territory as investors took cues from the strong showing on the local market, dumping the U.S. unit to buy the Taiwan dollar, dealers said.
Demand for the Taiwan dollar was also boosted after foreign institutional investors bought NT$5.58 billion (US$185 million) net worth of local shares, which helped the weighted index on the Taiwan Stock Exchange to finish 1.2 percent higher.
Market sentiment toward the regional economy improved after HSBC released preliminary data showing China's manufacturing purchasing managers' index (PMI) for May at 49.7, higher than an earlier market estimate of 48.3, dealers said. A s a result, traders in the region kept buying into the won, which rose 0.27 percent against the U.S. dollar at one point on optimism toward the economy and boosted interest in the Taiwan dollar in the local market, dealers said.