TURBULENCE:
Many Taiwanese exporters took advantage of a weaker NT dollar to sell US dollars, while the central bank stepped in late to smooth volatility, dealers said
The New Taiwan dollar fell sharply against the US dollar yesterday to move past NT$32.4 due to large fund outflows, dealers said. The NT dollar dropped NT$0.146 to close at NT$32.438 against the US dollar after reaching an intraday low of NT$32.490. Combined turnover on the Taiwan Foreign Exchange and the Cosmos Foreign Exchange totaled US$3.92 billion. The US dollar initially weakened against the NT dollar as the US dollar index, which tracks the greenback against the currencies of six major trading partners, declined, dealers said.
NT$1,000 banknotes are counted in a machine in Taipei in an undated photograph.
However, after the US dollar dipped to the day’s low, the currency rebounded as foreign institutional investors moved large sums of money out of Taiwan by selling NT dollar, they added. Although the TAIEX extended gains from the previous session, rising 266.66 points to close at 43,386.41 yesterday, foreign institutional investors remained net sellers, recording net sales of NT$19.19 billion (US$591.6 million) of Taiwanese shares.
