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Taiwan dollar falls below NT$33, hits 19-month low

The New Taiwan dollar will buy a little less US dollar today. The currency fell yesterday to NT$33 to the US dollar, its lowest level in 19 months.

The slide was attributed to the ongoing political tensions and a shaky economy, dealers said.

Weakness in the South Korean won -- also a factor in the NT dollar drop -- sent the won down to close at 1,214.3 to the dollar last night, its lowest level since Oct. 1, 1999.

Selling of greenbacks by the nation's Central Bank of China helped boost the NT dollar off lows, with the unit ending at 33.046, compared with Wednesday's close of 32.960.

"Investors scrambled to buy the greenback as they expected the Taiwan dollar to follow the footsteps of the Korean won," a dealer said.

"The Taiwanese dollar may continue its dive if the Korean won keeps falling in the next two to three trading sessions."

It has fallen about 60 won in two weeks.

Local media reports said exporters have urged the government not to keep the Taiwan dollar strong in the wake of the plunging won.

The Taiwan dollar traded yesterday between NT$32.700 and NT$33.197 on turnover of US$474 million.

This was very not far off the level it fell to on April 9 last year, when the Taiwan dollar closed at NT$33.095 against the greenback.

Some foreign banks have forecast the exchange rate may breach the NT$33.50-level before the year's end, but the central bank was swift to dismiss the forecast.

Taiwan's foreign currency deposits in October hit a record high of NT$968.80 billion (US$29.42 billion), the central bank said, as people bought the greenback and stashed it away in their banks on the island.
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