Taipei-The U.S. dollar rose against the Taiwan dollar Wednesday, gaining NT$0.017 to close at NT$30.010 in the wake of a plunge on the local equity market caused by sell-offs by foreign institutional investors, dealers said.
The gains posted by the U.S. dollar against the Taiwan dollar also reflected weakness in other regional currencies, which helped the U.S. unit return to the NT$30 mark by the end of the session, the dealers said.
The greenback opened at the day's high of NT$30.050 and moved to a low of NT$29.990 before rebounding. Turnover totaled US$469 million during the trading session.
Soon after the local foreign exchange market opened, the U.S. dollar staged a rebound from a slump seen a session earlier, and the strength continued as traders here took cues from a falling local equity market, the dealers said.
The U.S. dollar continued an uptrend, with selling in local equities escalating and focusing on large-cap electronics stocks, in particular Apple concept stocks, amid worries over iPhone X shipments, they said.
According to the Taiwan Stock Exchange, foreign institutional investors sold a net NT$11.1 billion (US$370 million)-worth of shares on the main board, sending the weighted index down 1.64 percent at Wednesday's close.
Despite the heavy selling by foreign institutional investors in the local equity market, the Taiwan dollar did not plunge as local shares did, which led dealers to think foreign institutional investors still kept most of their funds in Taiwan instead of moving them out of the country.
The dealers said the Taiwan dollar was also affected by losses suffered by other regional currencies, including the South Korean won, which the Taiwan dollar traces closely.
The won fell about 0.80 percent against the U.S. dollar after high-tech stocks in Seoul got hit badly.
The U.S. dollar is expected to stay firmer ahead of a policymaking meeting scheduled by the U.S. Federal Reserve for next week, as a rate hike by the Fed has been widely anticipated, the dealers said.
Source: Focus Taiwan News Channel