The New Taiwan dollar fell to a 15-month low against the US greenback yesterday, hurt by a weak stock market and little intervention by the nation's central bank, dealers said.
The currency broke the psychologically important 32 level, weakening 0.8 percent to end the day at 32.260, compared to the previous day's close of 31.990. Dealings were valued at US$747.5 million, up from US$505 million on Monday.
Dealers said yesterday that the NT dollar was hit by continuing outward flows of funds due to the weakness of the local equities market. As foreign investors sell off shares, the proceeds are remitted overseas, putting downward pressure on the NT dollar. Analysts expect the NT dollar to test the 32.50 level in the next few days.
Factors that may contribute to further weakening in the local currency include possible continued losses in the stock market and concern over high international crude oil prices.
Also, a widening in the gap between US and Taiwan interest rates would put further pressure on the NT dollar.
RSS