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

2017/10/20 17:06:46

Taipei, Oct. 20 (CNA) The U.S. dollar rose against the Taiwan dollar Friday, gaining NT$0.011 to close at NT$30.241 as weaknesses of other currencies in the region prompted traders here to dispose of the local unit, dealers said.

Market sentiment toward the U.S. dollar improved, in particular after the U.S. Senate, which is controlled by the Republicans, approved a multi-trillion U.S. dollar budget resolution, the first step toward President Donald Trump's tax reforms, the dealers said.

Foreign institutional buying in the local equity market, however, added some pressure to the U.S. dollar, helping the Taiwan dollar recoup part of its earlier losses by the end of the session, they said.

The greenback opened at NT$30.210 and moved between NT$30.204 and NT$30.241 before the close. Turnover totaled US$538 million during the trading session.

Soon after the local foreign exchange market opened, the U.S. dollar fell as traders locked in their gains built a session earlier, but on the back of the passage of the budget plan in the U.S. Senate, the greenback regained its footing to recover its earlier losses, the dealers said.

With Trump's tax reforms looming larger, currency traders have become upbeat about the U.S. economy, as the reforms, which will lower the business tax burden, are expected to boost the U.S. dollar eventually, they said.

The U.S. dollar came off its early high as traders heeded foreign institutional buying in local equities despite a fall in the weighted index, the dealers said.

According to the Taiwan Stock Exchange, foreign institutional investors bought a net NT$3.28 billion (US$108 million)-worth of shares on the main board, while the weighted index closed down 0.29 percent on losses suffered by major suppliers to Apple Inc.

In addition, a move by the People's Bank of China to raise the reference rate of the Chinese yuan against the U.S. dollar also gave additional support to the Taiwan dollar, the dealers said.

(By Frances Huang)