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U.S. dollar up on Taipei forex
2010/03/18 18:33:33 |
Taipei, March 18 (CNA) The U.S. dollar ended higher at 31.825 against the New Taiwan dollar Thursday on the Taipei foreign exchange, up by NT$0.078 from the previous day's close, on a turnover of US$828 million.
The U.S. dollar opened at 31.795 against the local currency and had a high of 31.825 and a low of 31.667 during the trading session.
Prompted by a U.S. dollar that was weakening against major currencies, the New Taiwan dollar rose sharply against the U.S. unit in early trading and broke the 31.7 level, reaching an 18-month high of 31.682 at one point before falling back, with analysts attributing the fall to possible central bank intervention.
Central Bank Governor Perng Fai-nan had vowed a day earlier to crack down on foreign dealers suspected of speculating on the local currency, in a bid to keep it relatively stable.
Encouraged by the rising local stock market, which has already surpassed its quarterly average, the New Taiwan dollar gained steam and hovered in a range between 31.693 and 31.682 against the U.S. dollar in the morning trading session.
Liang Kuo-yuan, president of Polaris Research Institute, predicted at a news conference that same day that the local currency will slightly appreciate against the U.S. dollar this year, with its value averaging 31.6 for the whole of the year.
According to Liang, the central bank will not allow the local currency to appreciate too much in a short period.
However, he went on, the central bank will probably raise the deposit reserve requirement ratio in the coming days, in a symbolic move to ease the wild movement of idle money before increasing key interest rates.
Given that many countries might come up with measures in the second half of this year to wind down economic stimulus packages put in place after the global financial crisis, Taiwan is very likely to make similar moves by that time, he said.
Liang contended that as China is expected to raise interest rates sooner than the United States, the central bank should be monitored to gauge whether it will follow suit. (By Flor Wang) ENDITEM/J
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