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,
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
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,
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
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)