NT$ ends slightly lower on weaker won

Taipei, March 20, 2003 (CENS)--The New Taiwan dollar yesterday dropped NT$0.050 to close at a three-week low of NT$34.780 against the U.S. dollar, as weakness in the South Korean won hurt the local dollar, dealers said.

The N.T. dollar opened at the session's high of NT$34.680 against the greenback and hit a low of NT$34.786 during the session.

Total turnover at the Taipei Foreign Exchange came to US$530 million, up from the previous session's US$403 million.

Dealers said that the N.T. dollar weakened after the won dropped to around KRW1,260 against the U.S. dollar during the session. The won ended at a five-month low of KRW 1,256.8 per U.S. dollar, compared with KRW1,253.9 in the previous session. Taiwan and South Korea compete in key export categories.

Some dealers suspected the central bank of slowing the slide of the local dollar in the afternoon session, but couldn't say for certain. The central bank prefers the local unit to remain weak, especially against rival currencies to help keep the competitiveness of the island's exporters.

Dealers expected the local dollar to experience a support area at NT$34.82-NT$34.85 in the near term.