Sandra Chuang, The China Post
The NT dollar yesterday rose NT$0.001 against the U.S. dollar to close at NT$34.975 to US$1 on a daily turnover of US$401.5 million.
The NT dollar opened higher at NT$34.915 to one U.S. dollar and extended its gains on constant greenback selling by exporters and banks. However, the strength of the currency was later constrained due to reports of a disappointing cut in GDP growth forecast released by the Institute of Economics under Academia Sinica.
“The report about the cut in GDP growth forecast to a 26-year low of 2.38 percent prompted some traders to dump the local currency for buying the greenback amid concerns over the poor economic prospect,” said a dealer at the local bank.
At midday, the NT dollar was quoted at NT$34.974 against the greenback, up NT$0.002 from the previous close of NT$34.976 with trading volumes of US$169.5 million. In the afternoon session, the local currency continued its descent due to the plunge in the local stock market, but the intervention by the Central Bank of China (CBC) helped to ease the depreciation pressure. The NT dollar was traded between NT$35.05 and NT$34.89 yesterday.