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

2017/04/21 19:19:19

Taipei, April 21 (CNA) The U.S. dollar fell against the Taiwan dollar Friday, shedding NT$0.045 to close at NT$30.363 as the local equity market staged a rebound on the back of foreign institutional buying, dealers said.

The weakness of the U.S. dollar against the Taiwan dollar also reflected strong Taiwanese export performance, while gains posted by other regional currencies gave another boost to the local unit, the dealers said.

It was the second consecutive session in which the U.S. dollar had moved lower against the Taiwan dollar to hit a low since March 31, when the U.S. currency closed at NT$30.336.

The greenback opened at the day's high of NT$30.420 and moved to the day's low of NT$30.300 before rebounding. Turnover totaled US$407 million during the trading session.

Soon after the local foreign exchange market opened, the U.S. dollar staged a mild rebound but soon lost momentum as the local stock market got a boost from gains posted on Wall Street overnight, the dealers said.

Foreign institutional investors rushed to pick up large-cap stocks on the local bourse, registering a net buy of NT$2.52 billion (US$83 million)-worth of shares on the main board.

Strong export growth in March prompted currency traders here to raise their holdings in the Taiwan dollar, the dealers said.

Last month, Taiwan's exports grew for the eighth consecutive month, up 21.8 percent from a year earlier to US$7.37 billion, largely on the back of strong global demand for mobile devices.

In addition, other currencies in the region, in particular the South Korean won, posted gains against the U.S. dollar, paving the way for a stronger Taiwan dollar, which tracks the won closely, they said.

However, turnover remained thin as market sentiment was overshadowed by political uncertainty in France, which will hold the first round of a presidential election on Sunday, with the results likely to affect global financial markets, the dealers added.

(By Frances Huang)
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