The Taiwan dollar strengthened on Friday to a near 20-month high on foreign inflows and deals by exporters ahead of next week's Lunar New Year holidays, but the central bank intervened to curb the currency's gains. Taiwan's currency reached as high as T$32.002 to the US dollar during the day's trade, the strongest level since June 5, 2006, when the intraday peak was T$31.958.
Dealers said Perng Fai-nan, Taiwan's central bank governor who was re-appointed earlier this week, was in the trading room at the central bank observing levels of the Taiwan dollar.
The Taiwan dollar finished at T$32.178, after opening flat at Thursday's closing price of $32.198, after the central bank bought US dollars heavily just before trading ended, dealers said. "There were a lot of exporters and offshore selling of the US dollar throughout the session. It's all happening before the Lunar New Year begins," said a dealer in Taipei.