The Taiwan dollar pulled back from its lowest level in more than 4 years on foreign fund inflows on Monday, its first trading day after the week-long Lunar New Year holiday, but central bank intervention kept the trading range limited.
The Taiwan dollar opened at a four-year low of T$33.900, the weakest intraday level since October 1, 2004, but later reversed losses to close the session at T$33.749. Volume on the main Taipei Forex Inc exchange was thin at $509 million, lower than the $840 million recorded on its last trading day on January 23.
"The central bank stepped in during the opening few minutes and just moments before trading ended," said a dealer in Taipei. "It's likely that they'll be around for the next couple of days because they don't want the local currency to rise too quickly."