The New Taiwan dollar on Friday rose against the US dollar, gaining NT$0.070 to close at NT$30.236, an increase of 0.2 percent from NT$30.302 a week earlier.
Turnover totaled US$987 million during the trading session.
The greenback opened at the day’s high of NT$30.250 and moved to a low of NT$30.170 before rebounding.
Elsewhere on Friday, the US dollar edged higher, but remained on track for its biggest weekly decline in four years, as trillions of US dollars of stimulus efforts by governments and central banks amid the COVID-19 pandemic helped temper a rout in global markets.
The US dollar has this month surged amid a drive for US dollars by investors trying to get their hands on the world’s most liquid currency.
However, big government spending pledges, including a US$2.2 trillion US package, and coordinated efforts by central banks worldwide to increase the supply of US dollars have supported a rally in other major currencies.
An unprecedented jump in US jobless claims on Thursday underscored the coronavirus’ effects on the economy, further weakening the US dollar.
The greenback on Friday gained 0.49 percent against a basket of currencies. It was on course for an about 2.57 percent fall for the week — its biggest weekly decline since February 2016.
Currency markets have been volatile. Last week, the US dollar index racked up its biggest weekly gain since the 2008 financial crisis.
“What we are seeing is abating stress in the money markets. Action by central banks has been successful so far and a shortage of [US] dollars has been taken of the table,” Commerzbank AG head of foreign exchange and commodity research Ulrich Leuchtmann said.
After this month’s large price swings, investors are likely to be especially active in rebalancing their books for month and quarter-end.
The Global Foreign Exchange Committee on Thursday warned that the coming few sessions could be volatile, as market participants execute larger-than-normal trades as part of this process.
Against the yen, the US dollar on Friday fell 0.71 percent to ￥108.80, as Japanese investors and companies repatriated funds before their fiscal year ends next week.
The euro fell 0.66 percent against the greenback to US$1.0955.
“Now that the surge in demand for [US] dollars overseas has been met by the Fed’s new improved swap lines, economic and medical fundamentals are taking over,” BDSwiss Group head of investment research Marshall Gittler said in a note.
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RISING: Strong exports, and life insurance companies’ efforts to manage currency risks indicates the NT dollar would eventually pass the 29 level, an expert said The New Taiwan dollar yesterday rallied to its strongest in three years amid inflows to the nation’s stock market and broad-based weakness in the US dollar. Exporter sales of the US currency and a repatriation of funds from local asset managers also played a role, said two traders, who asked not to be identified as they were not authorized to speak publicly. State-owned banks were seen buying the greenback yesterday, but only at a moderate scale, the traders said. The local currency gained 0.77 percent, outperforming almost all of its Asian peers, to close at NT$29.165 per US dollar in Taipei trading yesterday. The
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