Back to list

U.S. dollar closes lower on Taipei forex (update)

2012/05/10 18:05:04

Taipei, May 10 (CNA) The U.S. dollar fell against the Taiwan dollar Thursday, shedding NT$0.005 to close at NT$29.395 as traders took cues from the strength of most of the other currencies in the region -- in particular the Australian dollar -- to cut their holdings in the greenback, dealers said.

However, the local central bank's continued intervention late in the session, in a bid to slow down the local currency's appreciation, helped the U.S. dollar recoup most of its early losses, the dealers said.

The U.S. unit opened at NT$29.440 and moved between NT$29.333 and NT$29.450 before the close. Turnover totaled US$651 million during the trading session.

The U.S. dollar weakened against the Taiwan dollar soon after the local foreign exchange market opened due to the rising Australian dollar, which reversed a slump seen in the past two sessions, the dealers said.

The Australian dollar regained its foothold after Canberra reported a one-year low in unemployment, which prompted many traders to think positively about that country's economy, they said.

A technical rebound posted on the local bourse in the early trading session also boosted demand for the Taiwan dollar, which led foreign banks and exporters to stand on the "buy" side for the local currency, they added.

The weighted index closed up 0.11 percent at 7,484.01 points, off an early high of 7,523.37. Profit taking in the bourse let some of the air out of the Taiwan dollar, the dealers said.

In the late trading session, the local central bank stepped in to prop up the U.S. dollar, as it has done in recent sessions, amid worries that a stronger Taiwan dollar is hurting the country's global competitiveness, they said.

Since concerns over the financial crisis in the eurozone remained, many traders preferred to stay on the sidelines, keeping the U.S. dollar fluctuations within a narrow range.

Turnover remained moderate, in particular after the yield of 10-year bonds in debt-ridden Spain breached 6 percent for the first time in two weeks, prompting traders to adopt a more cautious attitude toward global financial markets, they added.

(By Wu Ching-chun and Frances Huang)