The Taiwan dollar strengthened on Monday as exporters sold US currency at the end of the month and the US dollar itself tanked globally, but losses in Taiwan stocks curbed the local currency's gains. The Taiwan dollar closed at T$30.354 to the US dollar, up from its Friday final price of T$30.388. Volume on the main Taipei Forex Inc was $1.067 billion, down from $1.221 billion on Friday.
"Today is the end of the month, so no small number of exporters were selling US dollars," a dealer in Taipei said. "And then the US dollar was pretty weak."
Exporters need the local currency for cash requirements at home, especially toward the end of each month. The US dollar fell to a one-month low against a basket of major currencies on Monday, hurt by near record high oil prices, weaker equity markets and US consumer confidence hitting a 28-year low.
But Taiwan stocks fell 0.33 percent to a new five-month closing low on Monday as investors pocketed profits from early gains, led by financial shares despite the government announcing a series of measures to prop up the market.
Foreign institutions sold a net T$1.189 billion ($39 million) in Taiwan stocks on Monday, bringing their net sales for all of June to T$116.046 billion. On the smaller Cosmos exchange, the Taiwan dollar closed at T$30.353 to the US dollar, compared to its previous final price of T$30.375.
Comments
Comments are closed.