The Taiwan dollar weakened on Friday due to active US dollar purchases by oil firms and foreign fund outflows, as well as the yen's fall, though exporters' deals capped the local currency's decline. The Taiwan dollar ended at T$32.938 to the US dollar from the previous close of T$32.849. It opened at T$32.949.
Volume on the main Taipei Forex Inc exchange fell to US $937 million from US $1.109 billion a day earlier. "There were active US dollar purchases by oil firms today. There were also some foreign fund outflows, which pressured the Taiwan dollar," said a dealer in Taipei.
Dealers said losses in the yen also pressured the Taiwan dollar. The yen fell 121.47/50 to the US dollar from 120.60/62 in the previous Asian trade, falling towards a four-year trough due to soft Japanese consumer prices.
"The US dollar will likely maintain its strength against other currencies in the short-term, pressuring the Taiwan dollar," said another dealer in Taipei. On the smaller Cosmos exchange, the Taiwan dollar weakened to T$32.935 to the US dollar from the previous close of T$32.850.
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