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

2018/02/07 17:28:52

CNA file photo

Taipei, Feb. 7 (CNA) The U.S. dollar fell against the Taiwan dollar Wednesday, shedding NT$0.116 to close at NT$29.270 as a roller-coaster Wall Street prompted currency traders to take risks by buying into the local currency, dealers said.

Amid reduced concerns over global equity volatility, the U.S. dollar encountered downward pressure throughout the session, stopping a four-session rising streak, the dealers said.

The greenback opened at NT$29.270 and moved between NT$29.200 and NT$29.299 before the close. Turnover totaled US$937 million during the trading session.

Soon after the local exchange market opened, the U.S. dollar faced heavy selling, as traders developed a greater appetite for risk, raising their holdings in the Taiwan dollar by dumping the greenback, the dealers said.

The move for traders to raise their holdings in the Taiwan dollar came after the Dow Jones Industrial Average staged a rebound of 2.33 percent Tuesday after a 4.6 percent slump the day before, they said.

The local main board rose 1.42 percent Wednesday, as buying was sparked by a strong showing on Wall Street, which demonstrated that many investors have calmed down to some extent from a plunge of 4.95 percent the previous day, the dealers said.

Many currency traders in the region felt relieved because of the Wall Street's gains, rushing to pick up regional currencies such as the South Korean won and the Chinese yuan, giving a strong hint to traders here to buy into the Taiwan dollar, the dealers added.

The Taiwan dollar's gains, however, were capped by the close as some Taiwanese importers entered the trading floor to purchase the U.S. dollar, taking advantage of the weakness of the greenback earlier in the session, the dealers said.

(By Chiu Po-sheng and Frances Huang)