U.S. dollar closes higher on Taipei forex

U.S. dollar closes higher on Taipei forex

 

Taipei, May 30 (CNA) The U.S. dollar rose against the Taiwan dollar Thursday, gaining NT$0.005 to close at the day's high of NT$30.125 after reversing earlier losses on the back of local central bank intervention, dealers said.

 

The central bank's buying of U.S. dollars showed its intention of keeping the unit above the NT$30-mark as local exporters, in particular high-tech firms, repeatedly urged the bank to depress the local currency, the dealers said.

 

The U.S. dollar opened at NT$30.125 and moved to an early low of NT$29.947 before rebounding. Turnover totaled US$1.01 billion during the trading session.

 

Ahead of the central bank making its presence felt, the U.S. unit continued its downtrend as local exporters dumped their greenbacks in exchange for Taiwan dollars to meet fund demands as the month draws to a close, the dealers said.

 

Foreign banks operating in Taiwan, however, remained on the buy side of the U.S. dollar amid rising concerns over an early exit by the U.S. Federal Reserve from its quantitative easing policy following a spate of improved economic data in the U.S., the dealers said.
After the U.S. dollar fell below the NT$30.00 mark, the central bank's buying appeared more obvious, the dealers said.

 

The central bank's move was believed to be in response to advocacy from local business circles for the bank to increase its intervention efforts, they said.

 

Some local exporters even urged the bank to lift the U.S. dollar to NT$32 against the Taiwan dollar to make local goods more competitive.

 

(Focus Taiwan, 30 May 2013)