Taipei, Recouping most of its earlier losses of NT$0.106, or 0.36 percent, on the back of foreign fund outflows, the U.S. dollar fell against the Taiwan dollar Friday, shedding only NT$0.026, or 0.009 percent, to close at NT$29.716, dealers said.
The U.S. dollar came off its earlier losses as currency traders at home and elsewhere in the region embraced hopes of a higher greenback prompted by a rate hike cycle by the Federal Reserve amid rising reflation in the United States, which led to more funds leaving the country, the dealers said.
For the week, the U.S. dollar closed down NT$0.008, or 0.27 percent, against the Taiwan dollar after a 0.77 percent fall a week earlier.
On Friday, the greenback opened at the day's high of NT$29.742, and moved to a low of NT$29.636 before rebounding. Turnover totaled US$597 million during the trading session.
Soon after the local foreign exchange market opened, the U.S. dollar faced downward pressure on follow-through selling from a session earlier as traders locked in their earlier gains from recent sessions, the dealers said.
The earlier heavy losses suffered by the U.S. dollar reflected the weakness of other regional currencies since the U.S. dollar index, which tracks the currencies of Washington's main trading partners in the region, fell overnight, they added.
However, foreign investors continued to move funds out of the region on expectations that the Fed will raise its key interest rates a further four times during the rest of the year after a hike in March, due to accelerating inflationary pressure, the dealers said.
Fund outflows became more obvious in the afternoon session, which helped the U.S. dollar recover most of its earlier losses and end slightly lower against the Taiwan dollar, the dealers said.
Turnover remained thin as many traders here stayed on the sidelines, waiting to see how Washington will report its non-farm job data for March later in the day for more clues about the U.S. economy and about how the Fed will adjust its monetary policy, the dealers added.
Source: Focus Taiwan News Channel