U.S. dollar closes higher on Taipei forex (update)

Taipei--The U.S. dollar rose against the Taiwan dollar Friday, gaining NT$0.020 to close at NT$30.332 as traders here reacted to the weakness of other regional currencies to cut their holdings in the local unit, dealers said.

Foreign institutional selling in Taiwan's stock market also gave a boost to the U.S. dollar and added downward pressure on the Taiwan dollar, they said.

The greenback opened on Friday at NT$30.400 and moved between NT$30.310 and NT$30.405 before the close. Turnover totaled US$453 million during the trading session.

Despite Friday's gains, the U.S. dollar closed down NT$0.026, or 0.09 percent, against the Taiwan dollar for the week.

Trader sentiment toward the Taiwan dollar was affected on Friday by the losses suffered by other currencies in East Asia, including the South Korean won, which the Taiwan currency follows closely, dealers said.

Selling in the currencies in the region was sparked by doubts that U.S. President Donald Trump will be able to push through his economic agenda after he dismantled two CEO advisory forums in the wake of his controversial remarks on the violent protests in Virginia, dealers said.

Under such circumstances, investors were reluctant to keep their funds in higher risk assets in Asia.

The won, which fell almost 0.4 percent against the U.S. dollar at one point, gave a clear indication to traders to send the Taiwan dollar lower, dealers added.

The U.S. dollar's momentum also moved ahead on the back of foreign institutional selling in the stock market, which pushed down the Taiwan dollar further, dealers said.

According to the Taiwan Stock Exchange, foreign institutional investors sold a net NT$4.80 billion (US$158 million) in shares on the main board, sending the weighted index down 0.46 percent at the close Friday.

Source: Focus Taiwan News Channel