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

Taipei--The U.S. dollar rose against the Taiwan dollar Friday, gaining NT$0.075 to close at NT$30.400, as traders here rushed to move their funds into U.S.-dollar denominated assets for hedging purposes amid rising geopolitical tensions, dealers said.

Foreign institutional selling in Taiwan's stock market also put downward pressure on the Taiwan dollar, helping the U.S. dollar stage a technical rebound after having lost ground three days in a row, they said.

The greenback opened at NT$30.400 and moved between NT$30.365 and NT$30.435 before the close. Turnover totaled US$503 million during the trading session.

For the week, the U.S. dollar fell NT$0.201, or about 0.66 percent, against the Taiwan dollar.

Soon after the local foreign exchange market opened Friday, the U.S. dollar moved higher as traders reacted to the United States' bombing of ISIS targets in Afghanistan, dealers said.

The military move added to global geopolitical tensions after Washington launched a cruise missile attack against a Syrian air base and deployed an aircraft carrier to the waters off the Korean Peninsula to deter North Korea's nuclear ambitions.

The unfavorable geopolitical situation led traders to dump the currencies in the region, in particular the South Korean won, which fell almost 0.90 percent against the U.S. dollar at one point, dealers said.

The weakness of the won, which the Taiwan dollar follows closely, motivated traders here to buy into the U.S. dollar throughout the session, they said.

A plunge in local share prices on foreign institutional selling put further selling pressure on the Taiwan dollar and lifted the greenback, dealers said.

According to the Taiwan Stock Exchange, foreign institutional investors sold a net NT$1.58 billion (US$51.97 million) in shares on the main exchange Friday.

Source: Focus Taiwan News Channel