U.S. dollar closes lower on Taipei forex (update)
2015-01-06 17:34:47

    Taipei, Jan. 6 (CNA) The U.S. dollar fell against the Taiwan dollar Tuesday, shedding NT$0.009 to close at NT$31.996 as the local currency staged a rebound from a plunge seen a session earlier, dealers said.

    The gains posted by other regional currencies, including the Japanese yen and the South Korean won, also gave hints to traders here to buy into the Taiwan dollar throughout the session, they said.

    The greenback opened at NT$32.010, and moved between NT$31.952 and NT$32.014 before the close. Turnover totaled US$849 million during the trading session.

    The U.S. dollar opened higher on follow-through buying from a session earlier, but soon fell into negative territory as traders here locked in gains from Monday, when the greenback rose NT$0.287 against the Taiwan dollar to hit a more than four-year high of NT$32.005, dealers said.

    The Taiwan dollar received support from the yen and the won, after the greenback fell 0.27 percent and 0.54 percent against the two currencies, respectively, encouraging traders to cash in their U.S. dollar holdings for the local currency.

    That upward pressure on the Taiwan dollar was offset somewhat by increased demand for the greenback from foreign institutional investors, who sold a net NT$18.07 billion (US$565 million) worth of shares on Taiwan's stock market Tuesday, dealers said.

    Despite the Taiwan's dollar's slight rebound Tuesday, dealers said it would likely continue its downtrend in the near term on expectations that the U.S. dollar will appreciate further because of anticipated interest rate hikes by the U.S. Federal Reserve in mid-2015.

    Uncertainty over the future of the eurozone could also result in greater demand for the U.S. dollar as a safe haven, dealers said.

    An anti-austerity party narrowly leads in polls on Greece's parliamentary election scheduled for later this month, and fears are that if it wins, Greece's debt situation could be further complicated and set off selling in non-U.S. dollar currencies, they said.

(By Frances Huang)

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