Taipei-The U.S. dollar closed flat against the Taiwan dollar on Tuesday at NT$30.018 after moving in a narrow range throughout the day amid cautious sentiment ahead of key central bank meetings later in the week, dealers said.
Following early gains, the U.S. dollar fluctuated slightly against the Taiwan dollar as other regional currencies gave no direction either, dealers said.
The greenback opened at NT$30.019, and moved between NT$30.011 and NT$30.026 before the close. Turnover totaled US$515 million during the trading session.
Soon after the local foreign exchange market opened, the U.S. dollar rose on follow-through buying but soon entered consolidation mode for the rest of the session as many traders stayed on the sidelines, dealers said.
Many traders in the region are inactive ahead of the U.S. Federal Reserve's last policymaking meeting of the year, which will start Wednesday, and meetings of other key central banks also scheduled for this week, dealers said.
The Taiwan dollar simply followed its regional counterparts, including the South Korean won, moving in a quiet session as traders awaited the Fed's decisions, which are widely expected to feature an increase of key interest rates, dealers said.
The U.S. dollar faced some profit taking pressure in the afternoon session, which eroded its earlier gains but was limited by foreign institutional selling in local equities, dealers said.
According to the Taiwan Stock Exchange, foreign institutional investors sold a net NT$4.91 billion (US$164 million) worth of shares on the main board, which helped send the weighted index down 0.28 percent by the close Tuesday.
Source: Focus Taiwan News Channel