US dollar rises to end trade at NT$29.460 on Taipei forex
CNATAIPEI--The U.S. dollar rose against the Taiwan dollar Wednesday, gaining NT$0.015 to close at the day's high of NT$29.460 after the local central bank propped up the greenback, helping the currency recoup earlier losses, dealers said.
October 17, 2013, 12:03 am TWN
Due to a fall in share prices in the local market, the slide of the U.S. dollar was limited even before the central bank's intervention, indicating that it was unnecessary for the bank to intervene to any great extent to reverse the currency's slide, the dealers said.
The greenback opened at NT$29.450 and moved between NT$29.368 and NT$29.460 before the close. Turnover totaled US$750 million during the trading session.
The U.S. dollar opened higher on a technical rebound after it fell to a nine-month low a session earlier, the dealers said.
Selling followed immediately to push the U.S. currency into negative territory as traders took cues from further fund inflows amid hopes that the U.S. Federal Reserve will postpone an exit from its monthly US$85 billion bond-buying program, they said.
The strength of the South Korean won, which traded at a high against the U.S. dollar since January at one point during the session, added downward pressure on the greenback in the local foreign exchange market, the dealers said.
Local exporters continued to stand on the sell side, aiming to lock in a favorable exchange rate to cut possible foreign exchange risks at a time when the market is widely expecting the Taiwan dollar to continue to climb, they said.
However, the gains posted by the Taiwan dollar against the U.S. dollar were capped as the local equity market suffered a technical correction to close down 0.42 percent, with selling focusing on the bellwether electronics sector, the dealers said.
As it has done in recent sessions, the local central bank jumped onto the trading floor again in the late session to dump the Taiwan dollar in exchange for the U.S. dollar in a bid to slow the pace of the local currency's appreciation and boost the country's global competitiveness, the dealers said.