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US dollar declines to NT$29.985 on Taipei forex

TAIPEI--The U.S. dollar fell against the New Taiwan dollar Wednesday, shedding NT$0.041 to close at NT$29.985 as local exporters cut their greenback holdings in exchange for the local currency to meet fund demand near the end of the month, dealers said.

Strong foreign institutional buying in the local market and the strength of other regional currencies also placed downward pressure on the U.S. dollar throughout the session, they said.

The losses posted by the U.S. dollar, however, were limited by the local central bank's intervention in a bid to slow down the pace of the New Taiwan dollar's appreciation.

It was the first time since July 11 that the U.S. dollar closed above the NT$30 mark, at NT$29.990.

The greenback opened at the day's high of NT$30.028, and moved to NT$29.905 before rebounding. Turnover totaled US$914 million during the trading session.

The U.S. dollar opened higher against the New Taiwan dollar on a mild technical rebound, but soon fell into negative territory as heavy foreign institutional buying boosted demand for the Taiwan currency, dealers said.

Foreign institutional investors bought a net NT$11.68 billion (US$390 million) worth of local shares, mostly big high-tech stocks, helping to push up the weighted index on the Taiwan Stock Exchange by 0.97 percent at the close.

Other regional currencies, in particular the South Korean won which rose 0.27 percent against the U.S. dollar at one point, regained their footing on month-end fund demands, which spurred selling in the greenback in the local foreign exchange market, dealers said.

Taiwan's central bank entered the market, as it has done in almost every recent session, helping the U.S. currency to recoup most of its earlier losses in a bid to protect Taiwan's products in the global market, dealers said.

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