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

2017/09/13 17:21:19

Taipei, Sept. 13 (CNA) The U.S. dollar rose against the Taiwan dollar Wednesday, gaining NT$0.026 to close at NT$30.056 after moving in a narrow range throughout the session on a lack of fresh leads, dealers said.

The U.S. dollar got a boost from foreign institutional selling in Taiwan's stock market, while a rebound staged by the Chinese yuan and a higher South Korean won helped the Taiwan dollar recover some of its early losses by the end of the session, they said.

The greenback opened at NT$30.020, and moved between NT$30.015 and NT$30.069 before the close. Turnover totaled US$853 million during the trading session.

Soon after the local foreign exchange market opened, the U.S. dollar saw some selling on a mild technical correction from a session earlier but soon regained its footing as investors reacted to a slide in Taiwan's stock market, dealers said.

The market's weighted index fell 0.73 percent on Wednesday after foreign institutional investors sold a net NT$9.14 billion (US$304 million) in shares, according to the Taiwan Stock Exchange.

But a rebound in the Chinese yuan after a three-session losing streak and gains posted by the won, which the Taiwan dollar tracks closely, later let some air out of the U.S. dollar, dealers said.

Despite a higher greenback, market sentiment toward the currency remained cautious ahead of the release of U.S. inflation data later in the week, which limited fluctuations in the currency throughout Wednesday's session, dealers added.

With the next two-day policymaking meeting of the U.S. Federal Reserve set to open on Sept. 19, currency traders would like to have more clues about the economic climate in Washington, including the inflation data, dealers said.

(By Frances Huang)