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

2017/09/26 17:12:35

Taipei, Sept. 26 (CNA) The U.S. dollar rose against the Taiwan dollar Tuesday, gaining NT$0.044 to close at NT$30.216, as traders moved funds into the U.S. currency amid renewed worry over geopolitical factors, dealers said.

Foreign institutional selling in local equities also put pressure on the Taiwan dollar and helped pushed the U.S. currency to its highest closing level since Aug. 25 when it ended at NT$30.250.

The greenback opened at NT$30.230, and moved between NT$30.180 and NT$30.240 before the close. Turnover totaled US$828 million during the trading session.

Soon after the local foreign exchange market opened, the U.S. dollar began gaining as regional tensions escalated after North Korea Foreign Minister Ri Yong Ho threatened on Monday to shoot down U.S. military planes, saying that U.S. President Donald Trump's aggressive rhetoric amounted to a declaration of war, dealers said.

Following Ri's comments, currency traders in the region began dumping regional currencies and moving their funds into U.S. dollars.

The South Korean won, which the Taiwan dollar tracks closely, fell more than 0.40 percent against the U.S. dollar at one point, giving a clear hint to currency traders here to cutting their holdings in the Taiwan dollar and buy into the greenback, dealers said.

A drop in the equity market in Taiwan due to foreign institutional selling also weakened the Taiwan dollar, dealers said.

According to the Taiwan Stock Exchange, foreign institutional investors sold a net NT$7.57 billion (US$251 million) worth of shares on the main board Tuesday, sending the weighted index down 0.76 percent by the close.

(By Frances Huang)