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

2017/06/19 18:23:14

Taipei, June 19 (CNA) The U.S. dollar fell against the Taiwan dollar Monday, shedding NT$0.020 to close at NT$30.361 as disappointing economic data led currency traders to cut their holdings in the U.S. currency, dealers said.

A strong showing in the local equity market on the back of foreign institutional buying also placed downward pressure on the U.S. dollar throughout the session, stopping a nine-session rising streak for the currency, the dealers said.

The greenback opened at the day's high of NT$30.390 and moved to a low of NT$30.315 before the close. Turnover totaled US$636 million during the trading session.

Soon after the local equity market opened, the U.S. dollar appreciated against the Taiwan dollar on follow-through buying, but soon lost steam as currency traders here took cues from weaker economic data released in Washington on Friday, the dealers said.

Housing statistics in the U.S. for May fell to their lowest in eight months, while a barometer of U.S. consumer sentiment unexpectedly dropped, which could slow the pace of the U.S. Federal Reserve tightening its monetary policy, the dealers added.

Due to the economic data, other regional currencies, including the South Korea won, which the Taiwan dollar tracks closely, moved higher, giving an additional indication to currency traders here to raise their holdings in the local currency, the dealers said.

The solid gains posted by the local equity market, with the weighted index breaching the 10,200-point mark, added selling in the U.S. dollar, as foreign institutional investors stood on the buy side, the dealers added.

According to the Taiwan Stock Exchange, foreign institutional investors bought a net NT$2.51 billion (US$82.67 million)-worth of shares on the main board, sending the weighted index up 0.92 percent at Monday's close.

(By Frances Huang)