The New Taiwan dollar yesterday finally broke nine straight sessions of losses against the US dollar, gaining NT$0.195 to close at NT$30.91, as fears over the US Federal Reserve raising interest rates at a fast pace eased.
Selling of the US dollar also reflected a strong rebound by the local stock market after a massive sell-off the previous day, as well as gains posted by several other regional currencies, in particular the South Korean won, traders said.
The NT dollar opened at NT$31.080 and moved to a high of NT$30.818 before paring some of its earlier gains.
Turnover totaled US$1.174 billion during the trading session.
US Department of Labor figures released on Thursday showed that US consumer prices climbed only 0.1 percent last month, slowing from a 0.2 percent increase in August, suggesting inflation remains in check, dealers said.
That sent the yield on benchmark 10-year US treasury bonds lower, reducing fears that the Fed would speed up the pace at which it raises rates.
It also dragged down the US dollar index, which tracks the currencies of the US’ six major trading partners, to its lowest level so far this month, dealers said.
Several other regional currencies also moved higher, with the won, which the NT dollar closely tracks, up more than 1 percent at one point against the US dollar, prompting traders in Taiwan to buy into the local currency, dealers said.
For the week, the NT dollar rose NT$0.07, or 0.23 percent, against the US dollar.
Dealers said it was too early to say whether the NT dollar has stabilized because of the ongoing uncertainty over trade friction, between the US and China, which could affect global fund flows and financial markets.
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