The U.S. dollar rose against the New Taiwan dollar Thursday, gaining NT$0.086 to close at the day's high of NT$32.436 amid losses by other regional currencies, dealers said.
As worry eased over an imminent interest rate hike by the U.S. Federal Reserve, the U.S. dollar gained strength Thursday after three consecutive sessions of decline.
The greenback opened at NT$32.400, and moved to a low of NT$32.380 before rebounding. Turnover totaled US$715 million during the trading session.
The U.S. dollar opened higher against the New Taiwan dollar as traders took cues from selling in the Singapore dollar and cut their holdings in the New Taiwan dollar, dealers said.
The Singapore dollar dropped after a surprise announcement by the Monetary Authority of Singapore (MAS) that it was setting the currency's rate of appreciation at zero percent against a basket of other currencies, citing unfavorable economic conditions.
Stunned by the MAS move, traders in the region began dumping regional currencies, including the New Taiwan dollar, which helped boost the U.S. dollar on the local foreign exchange, dealers said.
Currency traders are anticipating that other central banks in the region will adopt policies to make their currency cheaper and stimulate their exports, dealers said.
The New Taiwan dollar losses, however, were limited late in the trading session as foreign banks and Taiwanese exporters entered the trading floor to sell their U.S. dollars, dealers said.
Source: China Post