Taiwan dollar dips

The Taiwan dollar weakened on Friday, hit by foreign fund outflows as domestic stocks fell and by selling linked to oil deals, although buying by exporters helped to curb the local currency's decline. The Taiwan dollar ended at T$32.336 to the US dollar, down from the previous close of T$32.298. The local currency opened slightly stronger at T$32.296.
Volume on the main Taipei Forex Inc exchange was US $957.5 million, up from US $671 million a day earlier. "There were active foreign fund outflows in Taiwan stocks, which put pressure on the Taiwan dollar. Oil firms were also buying US dollars," said a dealer in Taipei.
"But on the other hand, exporters were selling US dollars around T$32.320, which was the trend for the whole session today." Exporters usually convert their US dollars to the local currency to meet their cash needs. Foreign institutions sold a net T$19.228 billion (US $595 million) in Taiwan stocks, as the benchmark index fell 1.58 percent.
Dealers said the central bank was not particularly active during the session, although its stand of preferring the Taiwan dollar to firm gradually remained intact. The central bank has been both buying and selling US dollars in the market during the past few months to ensure the Taiwan dollar firmed gradually to curb capital outflows and inflationary pressures.