U.S. dollar ends above NT$32 after strong September jobs report

Taipei, Oct. 7 (CNA) The U.S. dollar rose Monday to its highest level against the Taiwan dollar in almost a month, closing above NT$32, as the United States' soaring jobs report for September led to expectations that the Federal Reserve would slow its interest rate cuts.

On Monday, the greenback ended up NT$0.168, or 0.52 percent, at NT$32.131, its highest level since Sept. 10, when it closed at NT$32.173.

Dealers said the U.S. dollar attracted strong buying soon after the local forex market opened, as investors were encouraged by the U.S. nonfarm payroll report for September, which was released Friday. The report showed that some 254,000 jobs were created last month, beating an earlier market estimate of 150,000.

The robust jobs report might prompt the Fed not to make big rate cuts later this year, following its aggressive 50 basis point reduction in September, dealers said. As a result, the U.S. index, which traces the value of the currencies of Washington's six major trading partners, rose on Monday, dealers noted.

According to Taiwan's central bank, the U.S. dollar index rose 0.61 percent Monday, sending down regional currencies, with the Japanese yen falling 1.33 percent, the South Korea won 0.64 percent, and the Singapore dollar 0.54 percent.

The weakness of those Asian currencies put pressure on the Taiwan dollar throughout Monday's session, dealers said.

Although the Taiwan stock market posted strong gains Monday, with the Taiex rising by almost 400 points, the U.S. dollar continued to rise against the Taiwan dollar, dealers said. They speculated that central bank had stepped in to buy the local currency on the forex market in a bid to cap the greenback's gains.

In addition, Taiwanese exporters took advantage of the stronger greenback to buy more Taiwan dollars, which also helped ease the pressure on the local currency, dealers said.

Amid those factors, they said, the U.S. dollar came off its high of NT$32.204 by the end of the session to finish at NT$32.131.