NT dollar moves up on firmer yen

Sandra Chuang, The China Post

The NT dollar yesterday rose NT$0.052 to close at NT$34.961 against the U.S. dollar, while the daily turnover expanded from Thursday’s US$417 million to US$567.5 million.

The exchange rate opened at NT$34.996 to US$1 and edged higher amid positive sentiment that the local currency was able to stage a rebound after the Central Bank of China’s comments on the undervalued NT dollar. Profit-taking by banks and foreign traders were seen, helping the local currency to trade higher against the U.S. dollar throughout the session. “Market participants, especially overseas trades and banks, sold their greenback on beliefs that the further drops for the NT dollar will be limited given the island’s weak fundamental outlook,” said a dealer at a local bank. At the same time, reports on the strengthened Japanese yen against the U.S. dollar and a rise in the local stock market also helped to boost market sentiment, he added. Most dealers believed the NT dollar is likely to continue to consolidate around the current level in the near future.

The NT dollar was traded between NT$35 and NT$34.943 yesterday.