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

2017/09/21 17:49:07

Taipei, Sept. 21 (CNA) The U.S. dollar rose against the Taiwan dollar Thursday, gaining NT$0.076 to close at NT$30.208, as traders took cues from the weakness of other regional currencies to buy into the U.S. currency, dealers said.

Interest in the U.S. dollar grew after the U.S. Federal Reserve hinted at an interest rate hike later in the year, while foreign institutional selling in local equities put pressure on the Taiwan dollar, dealers said.

The greenback opened at NT$30.167 and moved between NT$30.153 and NT$30.225 before closing at NT$30.208, the highest level since Aug. 29. Turnover totaled US$1.17 billion during the trading session.

Soon after the local foreign exchange market opened, the U.S. dollar was boosted by a downturn of regional currencies, while traders cut their holdings in the Taiwan dollar, dealers said.

Buying in the U.S. dollar was triggered by the Fed's hint that it might raise interest rates later this year, although it decided Wednesday to maintain the current rates, dealers said.

Among the falling regional currencies, the South Korea won, which the Taiwan dollar tracks closely, dropped more than 0.4 percent against the U.S. dollar at one point, which encouraged traders here to buy into the greenback, dealers said.

In addition, foreign institutional investors stood on the sell side in the local equity market, increasing the pressure on the Taiwan dollar and giving an additional boost to the U.S. dollar throughout the session, dealers said.

According to the Taiwan Stock Exchange, foreign institutional investors sold a net NT$5.21 billion (US$172 million) worth of shares on the main board on Thursday.

(By Frances Huang)