NT dollar unchanged against U.S. greenback

By Sandra Chuang, The China Post

The NT dollar ended unchanged against the U.S. dollar yesterday. The exchange rate closed at NT$34.065 to the U.S. dollar on a daily turnover of US$288 million. The market opened marginally higher at NT$34.031 to the U.S. dollar but quickly fell in line with the weaker Japanese yen and the plunge in the local stock market. The exchange rate continued to drop to the daily low of NT$34.08 after data was released by the Ministry of Finance (MOF) showing that the decline in May import and export statistics hit a record low since March 1998.

The NT dollar was quoted at NT$34.07 to the greenback at 12:00p.m., down NT$0.009 from Wednesday’s close. In the afternoon, small quantities of NT dollar buying by overseas traders caused the currency rate to fluctuate between NT$34.065 and NT$34.075. Nevertheless, the Central Bank of China (CBC) intervened by selling greenbacks one minute before the market closed, helping the local currency to end flat yesterday.

“The selling by the central bank in the last minute surprised many traders,” said a dealer.

“However, I think the currency will remain at consolidation in the following days, as long as there is no negative news,” he added.

The NT dollar was traded between NT$34.031 and NT$34.08 yesterday.