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

2017/11/27 17:29:17

Taipei, Nov. 27 (CNA) The U.S. dollar fell against the Taiwan dollar Monday, shedding NT$0.004 to close at NT$30.006 amid rising fund demand from local exporters with the month coming to an end, dealers said.

The weakness of the U.S. dollar also reflected a lower U.S. dollar index, which tracks the currencies of Washington's six major trading partners, while massive foreign institutional selling in local equities gave some support to the U.S. unit, they said.

The greenback opened at NT$30.005, and moved between NT$29.990 and NT$30.009 before the close. Turnover totaled US$545 million during the trading session.

Soon after the foreign exchange market opened, the U.S. dollar came under pressure as traders took their cues from Taiwanese exporters who dumped the greenback in exchange for the Taiwan dollar to meet seasonal fund demand, dealers said.

The U.S. dollar also faced selling because the U.S. dollar index continued to move lower, which caused other regional currencies to rise, giving a strong indication to local traders to cut their greenback holdings throughout the session, they said.

However, a plunge in the local equity market caused by large foreign institutional selling helped the U.S. dollar recover part of its earlier losses by the end of the session, dealers said.

According to the Taiwan Stock Exchange, foreign institutional investors sold a net NT$8.29 billion (US$276 million) worth of shares on the main board, sending the weighted index down 0.95 percent at the end of the Monday session.

Turnover on the local foreign exchange market remained moderate with many traders staying on the sidelines, waiting for a U.S. Senate confirmation hearing scheduled for Tuesday for U.S. President Donald Trump's Federal Reserve Chair nominee Jerome Powell, dealers said.

Dealers said the Taiwan dollar is expected to become firmer over the next few sessions as seasonal fund demand from local exporters continues.

(By Frances Huang)