The New Taiwan dollar is expected to gain in value against the US dollar this week as a result of a large influx of foreign capital and a rising domestic stock market, according to the central bank .
Under strong pressure brought about by the continued inflow of foreign capital and by a selling spree by export businesses, the local currency appreciated by NT$0.165 against the greenback last week, bank officials said.
The NT dollar finished at NT$33.13 against the greenback on Friday, a noticeable rise over the week-earlier level of NT$33.295.
The officials forecast that the currency will further gain in value against the US dollar this week given widespread speculation that the greenback will remain weaker and that the Chinese yuan will pick up.
The average trading volume on the Taipei foreign exchange market exceeded US$1 billion for every day during last week, with the volume on two of those days being US$1.782 billion and US$1.731 billion, respectively, both among the top 10 historical highs.
The officials said a rebounding domestic market will fuel the pressure for the NT dollar to appreciate to the level of NT$33 against the US dollar in the coming days.
However, they pointed out that the central bank is very likely to intervene in an effort to maintain the value of the NT dollar in a range between NT$33.10 and NT$33.25 against the US dollar for the week.
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