New Taiwan dollar closed at NT$30.619 against greenback
By Kathryn Chiu, The China Post
March 26, 2014, 1:06 am TWN
TAIPEI, Taiwan -- Mainly vaulted by a strong local equity market, the New Taiwan dollar on Tuesday was traded at NT$30.619 against the greenback on the Taipei forex and closed up NT$0.003, or 0.01 percent, from the previous close.
Despite the ongoing demonstration against a business agreement with China, the New Taiwan dollar yesterday continued trending upward, opening up NT$0.115 against the U.S. dollar and shortly afterwards breaching NT$30.5.
However, the central bank stepped into the trading floor by the close to prop up the U.S. dollar, dragging the unit back to NT$30.619, up NT$0.003, or 0.01 percent, at the end of the session on a turnover of US$953 million.
Dealers told the United Evening News that the local unit was mainly boosted by the strong showing of the benchmark Taiwan Stock Exchange Weighted Index (TAIEX). Strong performances by Asian currencies along with a sell-off of U.S. dollars by exporters also led the New Taiwan dollar to increase, according to dealers.
One-week non-delivery forward (NDF) for the New Taiwan dollar yesterday gained NT$0.002 while one-month NDF advanced NT$0.025, signifying the market expectation that the New Taiwan dollar will continue appreciation in the short term.
The U.S. dollar edged down yesterday against major Asian currencies, closing at 1,078.1 against the Korean won and 6.1832 against the yuan. The U.S. dollar yesterday closed at 102.1 against the Japanese yen.