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

2017/08/23 19:47:55

Taipei, Aug. 23 (CNA) The U.S. dollar fell against the Taiwan dollar Wednesday, shedding NT$0.010 to close at NT$30.290 as the strength of other regional currencies encouraged local traders to buy into the local unit, dealers said.

Continued momentum in the local equity market on the back of foreign institutional buying pushed the U.S. dollar down to its lowest since Aug. 9, when the greenback closed at NT$30.218 against the Taiwan dollar.

The U.S. dollar weakened against the Taiwan dollar for the third consecutive session on Wednesday.

The greenback opened at a day's low of NT$30.260 and moved to a high of NT$30.298 before the close. Turnover totaled US$412 million during the trading session.

Soon after the local foreign exchange market opened, the U.S. dollar moved lower on follow-through selling from the previous session and the weakness continued as local traders took their cue from the gains posted by other regional currencies, dealers said.

Among the gaining regional currencies, the South Korean won, which the Taiwan dollar follows closely, rose more than 0.30 percent against the U.S. dollar at one point amid eased concerns over geopolitical tensions, despite on-going United States and South Korean military exercises, aimed at intimidating North Korea, dealers said.

A higher won prompted local traders to buy more Taiwan dollars throughout the session, dealers added.

The upturn enjoyed by the local equity market also boosted the Taiwan dollar as foreign institutional investors stood on the buy side, dealers said.

According to the Taiwan Stock Exchange, foreign institutional investors bought a net NT$498 million (US$16.44 million) worth of shares on the main board Wednesday, sending the weighted index up 0.14 percent at the close of trading.

Despite the gains posted by the Taiwan dollar, turnover on the local exchange market remained thin as many traders took to the sidelines ahead of the annual meeting of world central bankers scheduled for later in the week, dealers said.

Traders are anxiously waiting to hear what U.S. Federal Reserve Chair Janet Yellen and European Central Bank President Mario Draghi have to say at the meeting, dealers added.

(By Chiu Po-sheng and Frances Huang)