US dollar sheds NT$0.023 on Taipei forex
May 30, 2014, 12:09 am TWN
TAIPEI--The U.S. dollar fell against the Taiwan dollar Thursday, shedding NT$0.023 to close at NT$30.128 as local exporters continued their efforts to ensure their supplies of local currency to meet fund demands as the month comes to an end, dealers said.
Further foreign institutional buying in the local bourse placed more downward pressure on the U.S. dollar, while the strength of other regional currencies such as the Japanese yen and the South Korean won added selling pressure on the greenback, the dealers said.
However, the U.S. dollar recouped most of its earlier losses at the close on the back of intervention by the local central bank, which continued its efforts to keep the Taiwan dollar cheaper to boost the country's exports, they added.
The greenback opened at NT$30.151 and moved between NT$30.030 and NT$30.159 before the close. Turnover totaled US$594 million during the trading session.
The U.S. dollar opened flat, but traders were soon encouraged by rising fund demand from local exporters who picked up the Taiwan dollar to drag down the U.S. currency into the red, the dealers said.
The fund demand was largely seasonal in nature and could continue the following day -- the last business day of the month -- as local exporters need more local currency to pay their end-month expenses, they said.
The gains posted by the yen and the won against the U.S. dollar also gave a strong indication to traders here to cut their U.S. dollar holdings throughout the session on hopes that the European Central Bank (ECB) will come up with more stimulus measures in a policymaking meeting scheduled for next week, the dealers said.