TAIPEI — The U.S. dollar rose against the Taiwan dollar yesterday, gaining NT$0.092 to close at the day’s high of NT$30.885. Turnover totaled US$876 million during the trading session.
The greenback opened at NT$30.843 and moved to a low of NT$30.670 before rebounding.
Dealers said the local currency turned weaker against the U.S. dollar in line with declines in the euro and other Asian currencies as the greenback staged a rebound.
They said investors cut their holdings of Asian currencies after the U.S. Treasury decided on Friday to postpone the anticipated release of its twice-yearly currency report that may have labeled China as a currency manipulator.
The U.S. Treasury’s move prompted investors in Asia’s foreign exchange markets to speculate that Washington had softened its stance on pushing for the appreciation of the Chinese yuan, they added.
The stronger U.S. dollar eased the pressure on Taiwan’s central bank, which had repeatedly intervened in the foreign exchange market in recent weeks to cap the Taiwan dollar’s appreciation on fears that a stronger local currency would hurt Taiwan’s exports.