Taipei--The U.S. dollar fell against the Taiwan dollar Thursday for the third straight session, shedding NT$0.034 to close at N$30.745, as foreign funds continued to flow into the country, dealers said.
The U.S. currency also came under pressure due to selling by local exporters in exchange for the Taiwan dollar to meet month-end demand and foreign institutional buying in the local equity market, dealers said.
The greenback opened at the day's high of NT$30.800, and moved to a low of NT$30.724 before rebounding. Turnover totaled US$578 million during the session.
Soon after the local foreign exchange market opened, the U.S. dollar staged a mild technical rebound but soon lost momentum as traders here took cues from the foreign fund inflows, dealers said.
Although information released overnight indicated that the U.S. Federal Reserve is likely to raise interest rates again "fairly soon," foreign investors continued to move funds into the region, which helped boost the Taiwan dollar and other regional currencies, dealers said.
In addition, Taiwanese exporters were cutting their U.S. dollar holdings throughout the session, buying into the Taiwan dollar to meet month-end fund demand, dealers said.
In the local equity market, which moved in a narrow range, foreign institutional investors remained on the buy side, which helped drag down the U.S. dollar, dealers added.
According to the Taiwan Stock Exchange, foreign institutional investors bought a net NT$4.89 billion (US$159 million) worth of shares on the main board Thursday.
Source: Focus Taiwan News Channel