US dollar closes back up at NT$30.217 after intervention


CNA

TAIPEI — The U.S. dollar fell against the New Taiwan dollar yesterday, shedding NT$0.15 to close at NT$30.217, but higher than a low of NT$29.080 after intervention by the central bank.

Turnover totaled US$1.2 billion during the trading session.

The U.S. currency opened at NT$30.367 and moved between NT$29.080 and NT$30.379 before the close.

A rising Chinese yuan against the U.S. dollar stirred up selling in the greenback on the local foreign exchange market, dealers said.

Further inflows of foreign funds added downward pressure on the U.S. dollar, prompting exporters to dump their greenback positions before closing their 2010 books as the year comes to an end, they said.

The gains posted by the local bourse also paved the way for the upswing in the New Taiwan dollar, they added.

The benchmark weighted index closed up 0.46 percent at 8,907.91.

The dealers said that although the central bank has launched a probe into possible speculation staged by foreign banks in the local foreign exchange market, there were no signs that selling in the U.S. dollar would stop anytime soon.

Traders were betting on further appreciation of the New Taiwan dollar in the hope of continued foreign fund entries, as the U.S. is pumping funds into the market to boost its economy, the dealers said.

In late trade, the central bank stepped in again to boost the value of the U.S. dollar above NT$30.00, a level the market believes is acceptable to the central bank in the near term.