The Taiwan dollar strengthened for a third session on Friday to a nearly two-week high, tracking global markets higher as solid US economic data bolstered investors' risk appetites. The Taiwan dollar ended at T$32.018 against the US dollar, up from its Thursday close of T$32.04, on upbeat housing, jobless claims and manufacturing data in the United States, Taiwan's No 2 export destination.
Friday's final price was the strongest since August 23 even after a suspected final-hour central bank move that pared some of the day's gains to control market volatility. But US August non-farm payrolls data, due to be released later on Friday and forecast to fall for a third straight month, could dampen the forex market.
Risk appetite is seen improving if payrolls come in above forecasts, while markets would likely trade in a narrow range if the data meet expectations. More upbeat economic data or earnings from the United States would support the local currency as investors favour growth-linked assets. Signs of weakness in the US economy could pressure the forex market.