The New Taiwan dollar yesterday traded lower against its US counterpart in a relatively light session in which the nation's central bank intervened to lift the currency off its intraday lows.
The local currency closed down NT$0.205 to NT$34.030 against the greenback on the Taipei foreign exchange market. It was the unit's lowest closing level since June 19.
The NT dollar fell in line with weaker regional currencies and as a result of worries over President Chen Shui-bian's (陳水扁) cross-strait remarks over the weekend, dealers said.
According to the exchange, turnover was US$557 million, down from the previous day's US$880.5 million. The unit traded between NT$33.950 and NT$34.150 during the session.
The central bank -- which reportedly sold roughly US$100 million to prop up the NT dollar -- seems prepared to let the depreciation range of NT dollar against the greenback stay comparable to those of regional currencies, a dealer with a local bank said.
"Compared to other major currencies, the exchange level of NT dollar is quite stable," said Chou A-ting (
Chou said the NT dollar lost about 0.61 percent against the US dollar as of 4pm yesterday, compared to the Japanese yen's 1.02-percent drop, the South Korean won's 0.93-percent fall, the Singaporean dollar's 0.76-percent loss and the euro's 1.11-percent drop.
The local currency fell Monday after Chen's remarks triggered a wave of panic-selling, prompting the central bank to unload around US$400 million to support the NT dollar.
Chou said yesterday the central bank will intervene in the market if ``non-economic'' factors continue to push the currency lower.
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