NT dollar up NT$0.068 bolstered by softening of greenback in Asia trade

Sandra Chuang, The China Post

The NT dollar yesterday rose NT$0.068 to close at NT$34.893 against the U.S. dollar while the daily turnover shrank from Friday’s US$567.5 to US$362 million. The exchange rate opened higher at NT$34.948 to US$1 but briefly lost its strength due to weak buying sentiment among traders.

But bolstered by the U.S. dollar’s softening against major Asian currencies, the NT dollar regained its footing and continued its appreciation toward the close. At noon, the NT dollar was quoted at NT$34.928 against the greenback, up NT$0.033 from the previous close, amid thin trading volume of US$138 million. “The central bank’s comment on an undervalued NT dollar triggered some exporters and overseas traders to take profit, but most investors were sidelined ahead of other clear directions,” said a dealer at the local bank. A market analyst said over the weekend that the Central Bank of China’s governor implied the local currency still has room to strengthen.

Yet amid prolonged concerns over the island’s fundamental outlook, the local currency is expected to react further in the next few days. The NT dollar traded between NT$34.938 and NT$34.883 yesterday.