Wed, Dec 24, 2014 - Page 13 News List

US dollar closes higher on central bank intervention

Staff writer, with CNA

The US dollar yesterday rose against the New Taiwan dollar, gaining NT$0.179 to close at NT$31.765, as the central bank continued its strong intervention to boost the greenback, dealers said.

The bank took advantage of the weakness of other regional currencies to push the NT dollar lower in a bid to keep Taiwan-made exports competitive, they said.

The greenback opened at the day’s low of NT$31.595 and moved to the day’s high of NT$31.77 before the close. Turnover totaled US$969 million.

The US dollar opened higher against the NT dollar on follow-through buying and as other regional currencies, such as the Japanese yen and the South Korean won fell, dealers said.

The weaker yen and won reflected expectations that Washington would revise up GDP growth for the third quarter later yesterday to 4.3 percent, from its last estimate of 3.9 percent.

A move by the People’s Bank of China to slightly weaken the reference rate of the yuan against the greenback also added downward pressure on the NT dollar, but the local currency received some support from continued foreign institutional investor buying in the local stock market.

Foreign institutional investors bought a net NT$1.33 billion (US$41.87 million) in shares, Taiwan Stock Exchange data showed.

The central bank also intensified its efforts to boost the US dollar as it did on Monday to allow the NT dollar to fall at a faster pace, dealers said.

They said that with the NT dollar’s depreciation against the US dollar still lagging behind that of the yen and the won, the central bank is expected to continue to push down the value of the local currency in the near future.

They added that the US dollar is likely to hit the NT$32 mark soon.

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