The Taiwan dollar held steady on Friday in light trade, as wary investors awaited US jobs data due later in the day and after the central bank intervened in the market earlier in the week. The Taiwan dollar closed at T$32.597 to the US dollar, barely changed from the previous close of T$32.599.
Volume on the main Taipei Forex Inc exchange was US $556 million, lower than US $772 million a day earlier. Investors saw few lucrative buying or selling opportunities as the currency fluctuated so little. The central bank did not intervene amid a lack of any dramatic shifts, dealers said.
"Everyone thinks this reflects a real demand and a real supply," a trader in Taipei said. The Taiwan dollar has trended stronger since the second half of September due to foreign fund inflows, some exporters' deals and intervention by the central bank, which wants the local currency to rise, but not too much or too quickly.
The United States will announce the widely watched non-farm payrolls data on Friday, which will offer clues as to the strength of the US economy. "Traders will wait through the weekend and see on Monday what's going on the United States," another Taipei dealer said. Poor results could push the US dollar down against key currencies, prompting an outflow of US dollars, another dealer in Taipei said.