The Taiwan dollar weakened on Friday in thin trade as the US currency rebounded globally, local stocks fell and many investors held back, waiting for fresh economic news. The Taiwan currency closed at T$30.401 against the US dollar, compared with the previous close of T$30.390.
Volume on the main Taipei Forex Inc exchange was a light $824 million, compared to $1.256 billion a day earlier. "There really were no big factors today," a dealer in Taipei said. "There wasn't much movement, and the trading range was narrow. We saw flows, but they were average."
The US currency's global comeback pressured the Taiwan dollar early on Friday, dealers said. The US dollar edged up against the euro, extending sharp gains made the previous day after US payroll data came in close to expectations and eased some fears about the health of the US job market and economy.
Foreign institutions sold a net T$10.751 billion ($354 million) in Taiwan stocks on Friday and they have sold a total of T$35.056 billion for the month to date. As foreigners pull out, they may sell their Taiwan dollar proceeds, putting pressure on the currency.