TWD strengthens past NT$30 against the dollar

The China Post news staff and CNA

The New Taiwan dollar strengthened past NT$30 yesterday to close at NT$29.999, on more fund inflows from foreign investors, dealers said. The closing figure was a rise of NT$0.052 compared to the previous session, on trade volume of US$884 million. The local currency yesterday opened at NT$30.6, down NT$0.009 from the previous session, and subsequently went on a sharp upward trend despite of weaker performances by other Asian currencies, on what dealers said were more fund inflows from foreign investors. Foreign investors began wiring funds into Taiwan Tuesday, in which they posted a net purchase of NT$10 billion. Yesterday they again purchased a net of NT$2.22 billion in local stocks. Foreign investors’ actions, plus foreign banks and exporters’ moves to sell their U.S. dollar holdings, caused the New Taiwan dollar to surge to NT$29.904 by noontime, up NT$0.147 from the previous session. In the afternoon trade, the currency lost momentum a bit, despite a lack of intervention efforts by the Central Bank of the Republic of China (Taiwan), dealers said. The currency ended up closing at NT$29.999, the strongest since Nov. 1, 2011, when the New Taiwan dollar closed at NT$30.086. In the stock market, share prices in Taiwan extended their momentum yesterday from a day earlier on buying by foreign investors, who appeared more willing to take on risk in global equity markets as their concerns over eurozone debt eased, dealers said.

The gains were capped, however, by strong technical resistance at around the 7,200-point mark, they said.

The weighted index closed up 9.34 points, or 0.13 percent, at 7,188.21, after fluctuating between 7,184.38 and 7,212.36, on turnover of NT$88.16 billion.

The market opened up 0.37 percent on follow-through buying from Tuesday as investors were encouraged by the gains posted on Wall Street on Fitch Ratings’ comments that Europe is on the right path in dealing with its debt crisis.

The index continued to climb to the day’s high amid improving market sentiment, but profit-taking set in to limit the gains after the market briefly breached the 7,200 level, they said.

“I suspect foreign funds still served as the major support to the local bourse after foreign institutional investors were net buyers of about NT$10 billion in shares Tuesday,” Hua Nan Securities analyst Stan Chang said. In individual shares, flat panel maker AU Optronics closed up 4.38 percent at NT$14.30 as investors were more optimistic about its earnings outlook for 2012.