Taipei-The U.S. dollar rose against the Taiwan dollar Monday, gaining NT$0.003 to close at NT$30.018 in a quiet session ahead of a policymaking meeting scheduled by the U.S. Federal Reserve for later in the week, dealers said.
Foreign institutional selling in equities led currency traders to dispose of their Taiwan dollars, which helped the U.S. dollar recover its earlier losses to end in positive territory, the dealers said.
The greenback opened at NT$30.017 and moved between NT$30.001 and NT$30.025 before the close. Turnover totaled US$499 million during the trading session.
Soon after the local foreign exchange market opened, the U.S. dollar staged a mild technical rebound from a session earlier but soon fell into consolidation mode, being traded in the red in the morning trading session, the dealers said.
The fluctuations in the U.S. dollar were limited, with turnover in the local market moderate, as many traders preferred to stay on the sidelines ahead of the Fed's meeting, the dealers added.
While the market has widely anticipated that the Fed will raise its key interest rates in the meeting, traders are waiting for the U.S. central bank's comments for more clues about how it will adjust its monetary policy next year, the dealers said.
In addition to the Fed, the European Central Bank and the Bank of England will also hold meetings this week, which has made market sentiment here even more cautious, they added.
The Taiwan dollar lost its earlier momentum as traders took cues from further selling in local equities by foreign institutional investors, although the main board closed higher, the dealers said.
According to the Taiwan Stock Exchange, foreign institutional investors sold a net NT$3.78 billion (US$126 million)-worth of shares on the main board Monday after a net sell of NT$2.37 billion a session earlier.
Source: Focus Taiwan News Channel