Local currency climbs on firmer yen

By Sandra Chuang, The China Post

The NT dollar yesterday broke through the NT$34 to one U.S. dollar level on a firmer Japanese yen and greenback selling by exporters ahead of the month-end. The exchange rate rose NT$0.048 to close at NT$33.965 against the greenback, while the daily turnover expanded sharply to US$723 million from the US$551 million of the previous session.

The exchange rate stood at NT$33.97 to one U.S. dollar when the market opened, and was boosted by month-end corporate demand for the local currency and a strengthened yen. Active U.S. dollar selling by exporters and foreign traders helped the NT dollar hit a daily high of NT$33.88 in the morning.

“Foreign investors today apparently ignored the uncertainties of the local stock market,” said a dealer. “They continued buying the local currency to increase their stockholding, which also pull up the value of the local currency,” he added. The NT dollar was quoted at NT$33.97 against the greenback at 12:00 p.m., up NT$0.089 from Wednesday’s close. In the afternoon session, the Central Bank of China began to take measures to intervene in the market by buying U.S. currency at the NT$34 level in an attempt to stabilize the market.

The NT dollar substantially traded in a narrow-range consolidation between NT$33.85 and NT$34 for the day.