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

2018/02/23 18:21:42

Taipei, Feb. 23 (CNA) The U.S. dollar rose against the Taiwan dollar Friday, gaining NT$0.005 to close at NT$29.306 amid expectations of higher interest rates in the United States later this year, dealers said.

For the week, however, which was shortened to only three trading sessions because of the Lunar New Year holiday, the U.S. dollar still closed down NT$0.036, or 0.12 percent, against the Taiwan dollar.

The greenback opened on Friday at NT$29.273, and moved between NT$29.226 and NT$29.310 before the close. Turnover totaled US$810 million during the session.

Soon after the forex market opened, the U.S. dollar faced downward pressure as the Taiwan dollar staged a technical rebound from a decline a day earlier, dealers said.

Interest in the Taiwan dollar was largely driven by a move to match gains posted by other regional currencies against the U.S. dollar and a decision Friday by the People's Bank of China to raise the Chinese yuan's reference rate against the greenback, they said.

The Taiwan dollar's strength also reflected a net buy of NT$2.12 billion in shares by foreign institutional investors in Taiwan's stock market, which can indicate stronger demand for the local currency.

But the U.S. dollar regained its footing in the afternoon as traders took into consideration expectations that the U.S. Federal Reserve will raise its key interest rates more than three times this year, dealers said.

Such concerns have weighed on the market since the minutes of the last policymaking meeting of the Fed in January showed the U.S. economy has been growing at a faster than expected pace, they said.

(By Frances Huang)