U.S. dollar closes higher on Taipei forex (update)
Jun 06, 2017AthleticComments Off on U.S. dollar closes higher on Taipei forex (update)
Taipei--The U.S. dollar rose against the Taiwan dollar on Tuesday, gaining NT$0.003 to close at NT$30.093, ending a two-session losing streak after moving in a narrow range, dealers said.
Sentiment remained cautious as many currency traders stayed on the sidelines amid uncertainty over global economic and political conditions before a policymaking meeting planned by the European Central Bank (ECB) and the parliamentary election in the United Kingdom on Thursday, they said.
The greenback opened at NT$30.090, and moved between NT$30.048 and NT$30.096 before the close. Turnover totaled US$622 million during the trading session.
The U.S. dollar opened flat and moved within a narrow range throughout the session, as local traders saw no clear indications in the movement of other regional currencies, which also moved slowly, dealers said.
Traders in the region turned cautious, waiting for the outcome of the ECB meeting and U.K. election on Thursday, dealers said, adding that either event has the ability to change the direction of global financial markets so traders are choosing not to act until the situation becomes clearer.
Uncertainty over the ECB decision and U.K. election also limited the U.S. dollar index, which tracks the currencies of Washington's six major trading partners against the greenback, dealers said.
In the local equity market, foreign institutional investors continued to stand on the buy side, giving some support to the Taiwan dollar, which rose against the U.S. dollar for most of the session, dealers said.
According to the Taiwan Stock Exchange, foreign institutional investors bought a net NT$651 million (US$21.63 million) worth of shares on the main board on Tuesday.
However, the U.S. dollar was subject to bargain hunting late in the trading session, helping the currency recoup earlier losses and finish above the previous days' closing level, dealers said.