Taipei--The U.S. dollar rose against the Taiwan dollar Saturday, gaining NT$0.010 to close at NT$30.127 after moving in a quiet session on low turnover, dealers said.
Taiwan was the only foreign exchange market in the world to open, so traders here got no indication from other regional markets upon which to act, dragging down the trading volume, the dealers said.
The Saturday session opened to make up for a lost session caused by the four-day Dragon Boat Festival holiday in late May.
The greenback opened at NT$30.075 and moved between NT$30.055 and NT$30.129 before the close. Turnover totaled US$250 million during the trading session.
For the week, the U.S. dollar rose NT$0.005, or 0.02 percent, against the Taiwan dollar.
Soon after the local foreign exchange market opened, the U.S. dollar lost steam against the Taiwan dollar as traders here took cues from a worse-than-expected job report due overnight in Washington, the dealers said.
In the May non-farm payroll report, about 138,000 jobs were created in the month, far below an earlier market estimate of 185,000, which prompted currency traders to think the U.S. Federal Reserve will slow its pace of hiking its interest rates, they said.
The Fed is scheduled to hold a policymaking meeting June 13-14.
Foreign institutional buying in local equities placed more selling on the U.S. dollar for most of the trading session, the dealers said. According to the Taiwan Stock Exchange, foreign institutional investors bought a net NT$64.46 million (US$2.14 million)-worth of shares on the main board on Saturday.
However, the U.S. dollar recouped its earlier losses in the late trading session as bargain hunters turned active, the dealers said, adding that the low turnover made it easier for the greenback to reverse the early downturn.
Source: Focus Taiwan News Channel