NT depreciation pressure checked

By Sandra Chuang, The China Post

The NT dollar yesterday ended flat with most traders expecting a further rate cut by U.S. Federal Reserve. The exchange rate quoted at NT$32.882 against the U.S. dollar, while the daily turnover shrank to US$275 million, compared with last Friday’s US$315 million. The exchange rate stood at NT$32.88 to the U.S. dollar when the market opened and rose slightly on the expected demands for the local currency after the weekend fire at Hsichih high-tech complex. The depreciation pressure emerged shortly in reflection of the usual demands for foreign currency on Monday but was eased by small greenback selling in the later trading hours. “There was no denying that the fire somewhat has an impact on the market this morning, but with limited influence, ” said a market observer.

He added that most traders remained quiet yesterday, waiting for tomorrow’s interest rate decision by U.S. Federal Open Market Committee (FOMC). The NT dollar yesterday traded between NT$32.885 and NT$32.871.