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U.S. dollar ends 8-session rise, falls below NT$31

2018/10/12 18:20:01

Taipei, Oct. 12 (CNA) The U.S. dollar fell against the Taiwan dollar Friday for the first time in nine trading sessions, shedding NT$0.195 to close at NT$30.910, as traders' fears of the Federal Reserve raising interest rates at a fast pace were eased.

Selling in the U.S. dollar also reflected a strong rebound by Taiwan's stock market from a sell-off a day earlier, and the gains posted by some other regional currencies, in particular the South Korean won, they said.

The greenback opened at the day's high of NT$31.080, and moved to a low of NT$30.818 before rebounding. Turnover totaled US$1.174 billion during the trading session.

For the week, the U.S. dollar fell NT$0.070, or 0.23 percent, against the Taiwan dollar.

On Friday, the U.S. dollar opened lower on a correction from a jump of NT$0.137, or 0.44 percent, a session earlier, and selling escalated because of reduced anxiety over future Fed rate hikes, dealers said.

According to data released in the U.S. overnight, the consumer price index in the U.S. rose only 0.1 percent in September, slowing from a 0.2 percent increase in August, suggesting inflation remains in check.

That sent the yield on benchmark 10-year treasury bonds lower, reducing fears that the Fed will speed up the pace at which it raises rates.

It also dragged down the U.S. dollar index, which tracks the currencies of Washington's six major trading partners, to its lowest level so far this month, dealers said.

Some other regional currencies also moved higher with the won, which the Taiwan dollar follows closely, up more than 1 percent at one point against the U.S. dollar, prompting traders here to buy into the Taiwan dollar, dealers said.

A strong rebound of 2.44 percent in the weighted index on the Taiwan Stock Exchange from a 6.31 percent plunge on Thursday also paved the way for the Taiwan dollar's gains against the greenback, dealers said.

Dealers said it was too early to say whether the Taiwan dollar has stabilized because of ongoing uncertainty over trade friction between the United States and China, which could affect global fund flows and financial markets.

(By Chiu Po-sheng and Frances Huang)
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