U.S. dollar dips to new 5-year low on Taipei forex market

Taipei, Jan. 24 (CNA) The U.S. dollar fell against the Taiwan dollar Wednesday, shedding NT$0.100 to close at NT$29.302, the lowest in five years, as foreign investors moved more funds into the region, dealers said.

 

Dealers said the local central bank continued to intervene in a bid to bolster the U.S. dollar and protect Taiwan's global competitiveness, but its efforts were limited to some extent as it took cues from the strength of other regional currencies.

 

The U.S. dollar closed at the lowest level since Jan. 25, 2013, when it ended at NT$29.250 against the Taiwan dollar.

 

The greenback opened at NT$29.300, and moved between NT$29.204 and NT$29.303 before the close. Turnover totaled US$939 million during the trading session.

Soon after the local foreign exchange market opened, selling in the U.S. dollar continued from the previous session amid further foreign fund inflows and a weaker U.S. dollar index, which tracks the currencies of Washington's six major trading partners, dealers said.

 

Foreign institutional buying in local equities also boosted the Taiwan dollar and dragged down the U.S. dollar during the session, dealers added.

 

According to the Taiwan Stock Exchange, foreign institutional investors bought a net NT$4.24 billion (US$145 million) worth of shares on the main board Wednesday.

 

Dealers said the central bank entered the trading floor in the early morning session to slow down the pace of the U.S. dollar's decline but it withdrew later in the session when it saw other regional currencies appreciating against the U.S. dollar in line with the Taiwan dollar.

 

After that, the U.S. dollar moved in a relatively stable session following the volatile trading in the previous two sessions, when the bank had aggressively bought into the U.S. currency, dealers said.

 

After its heavy losses in recent sessions, the U.S. dollar is expected to see strong technical support at around NT$29.00 if it continues to fall, dealers added.

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