US dollar closes higher on Taipei forex (update)
U.S. dollar closes higher on Taipei forex (update)
Taipei, Aug. 7 (CNA) The U.S. dollar rose against the Taiwan dollar Monday, gaining NT$0.014 to close at NT$30.234 after the U.S. unit recouped earlier losses due to foreign fund outflows, dealers said.
Foreign institutional selling in Taiwan's stock market, which closed at a 27-year-high on Monday, also placed downward pressure on the Taiwan dollar, they said.
The greenback opened at NT$30.200, and moved between NT$30.187 and NT$30.275 before the close. Turnover totaled US$585 million during the trading session.
The U.S. dollar initially fell against the Taiwan dollar on Monday on follow-through selling from a session earlier as investors reacted to a technical rebound in the domestic equity market, dealers said.
The Taiwan dollar even outperformed other regional currencies in the morning as traders here shrugged off the better than expected United States non-farm jobs data released on Friday in Washington to focus on a strong showing in the stock market, they said.
But the U.S. dollar regained its footing in the afternoon as traders noticed foreign investors starting to move funds out of the country as the U.S. job data began to influence the currency market, dealers said.
The greenback also got a boost from selling by foreign institutional investors on the stock market, dealers added.
The weighted index on the Taiwan Stock Exchange closed up 0.69 percent at 10,579.38 on Monday, the highest level since April 4, 1990, when the weighted index ended at 10,907.09.
But foreign institutional investors sold a net NT$560 million (US$18.52 million) in shares on the main board Monday, according to the TWSE.
Dealers said currency investors should watch closely whether foreign institutional investors continue to sell more shares than they buy in Taiwan in the coming days and move funds out of the country, which could lift the U.S. dollar down the road.