NT dollar edges up on firmer yen

Sandra Chuang, The China Post

The NT dollar yesterday broke through the NT$34.4 for one U.S. dollar level for the first time since June 18, with the exchange rate rising NT$0.034 to close at NT$34.394 on a daily turnover of US$351.5 million.

The market opened higher at NT$34.404 to US$1 boosted by a firmer Japanese yen and active selling of non-delivery forward (NDF) contract for the greenback. However, concerns over later reports on the yen’s consolidation caused the NT dollar to gradually lose its strength remaining range bound throughout the late-morning session. “Apart from the wavering yen, speculation on the import and export statistics and foreign exchange reserves for June also affected the market sentiment as the government is scheduled to release these statistics next week,” said a dealer.

The NT dollar was quoted at NT$34.426 against the greenback at noon, up NT$0.002 from the previous close.

In the afternoon session, however, the local currency regained its strength on the back of the yen’s appreciation and the greenback selling by the Central Bank of China. The continued inflows of foreign stock investment funds were also seen, helping the local currency to close higher, above the 34.4 level.

The NT dollar was traded between NT$34.439 and NT$34.391 yesterday.