Taipei-- The U.S. dollar fell against the Taiwan dollar Monday, shedding NT$0.021 to close at NT$31.030 as foreign funds continued to flow into the country, dealers said.
A gaining local equity market on the back of foreign institutional buying added downward pressure on the U.S. dollar, pushing the unit to a new low since Feb. 6, when the currency closed at NT$30.963 against the Taiwan dollar, the dealers said.
The greenback opened at NT$31.085 and moved between NT$31.000 and NT$31.095 before the close. Turnover totaled US$668 million during the trading session.
Soon after the local foreign exchange market opened, the U.S. dollar staged a technical rebound from a session earlier, but then fell into negative territory as traders here took cues from further fund inflows in Taiwan to cut their greenback holdings, the dealers said.
The heavier fund inflows were partly because some Taiwanese investors operating overseas, in particular in China, moved their money back to Taiwan as the Chinese authorities have tightened measures to crack down on tax evasion by foreign investors, they said.
The U.S. dollar also felt the pinch of the impact of foreign institutional buying in local large cap equities, such as contract chip maker Taiwan Semiconductor Manufacturing Co. (???), the dealers said.
According to the Taiwan Stock Exchange, foreign institutional investors bought a net NT$4.44 billion (US$143 million)-worth of shares on the main board, sending the weighted index up 0.46 percent at the end of the session Monday.
Source: Focus Taiwan News Channel