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

2017/10/13 17:29:11

Taipei, Oct. 13 (CNA) The U.S. dollar fell against the Taiwan dollar Friday, shedding NT$0.028 to close at NT$30.185 on the back of the strength of other currencies in the region, dealers said.

Foreign institutional buying in local equities also placed downward pressure on the U.S. dollar throughout the session, sending the currency to a low not seen since Sept. 25, when the unit closed at NT$30.172, the dealers said.

The greenback opened at the day's high of NT$30.219 and moved to a low of NT$30.162 before rebounding. Turnover totaled US$697 million during the trading session.

Soon after the local foreign exchange market opened, the U.S. dollar came under pressure as traders were motivated by the gains posted by other regional currencies to pick up the Taiwan dollar, the dealers said.

The upturn in the regional currencies reflected optimism toward the economic fundamentals in the region after China, the second- largest economy in the world, reported an 18.7 percent increase in imports for September, beating an estimate of a 13.5 percent rise, as many Chinese firms increased their production equipment purchases, they said.

Meanwhile, further foreign institutional buying in the local equity market, with investors continuing to pick up select high-tech stocks, prompted currency traders to raise their holdings in the Taiwan dollar throughout the session, the dealers said.

According to the Taiwan Stock Exchange, foreign institutional investors bought a net NT$2.65 billion (US$87.79 million)-worth of shares on the main board, sending the weighted index up 0.12 percent at the close of Friday trading. Thursday's foreign net buy totaled NT$6.28 billion.

Despite the fluctuations of the U.S. dollar, turnover remained moderate, as many traders stayed on the sidelines waiting for the release of inflation data from Washington later in the day, which could serve as one of the critical indications for the U.S. Federal Reserve to adjust its monetary policy, the dealers said.

In addition, the currency market was also watching closely how the U.S. will report its retail data to determine its economic climate, the dealers added.

(By Frances Huang)