NT$ ends up on U.S.-dollar selling by exporters, foreign investors

Taipei, Aug. 5, 2003 (CENS)--The New Taiwan dollar ended higher against its U.S. counterpart yesterday on selling of U.S. dollars by exporters and inflows of foreign equity funds, dealers said.

The local unit closed at NT$34.430, compared with NT$34.510 in the previous session. Total turnover at the Taipei Foreign Exchange was valued at US$394.5 million, down from Friday's US$446 million.

The local currency opened at NT$34.462 and was trading between NT$34.370 and NT$34.494, dealers said.

Selling of the U.S. dollars by local exporters and foreign equity investors helped lift the local unit, dealers. In addition, gains in the Japanese yen also boosted the sentiment of the local currency.

The yen was last trading at Y119.84 late Monday in Asia, compared with Y120.11 Friday in New York.

However, dealers said that the central bank bought the U.S. dollar around NT$34.43 to try to cap the strength of the local unit.

Dealers said the N. T. dollar is expected to trade between NT$34.30 and NT$34.50 Tuesday.

Meanwhile, the overnight interbank offered rate averaged at 1.025%, higher than 1.023% in the previous session as the central bank sold NT$45 billion in government paper to mop up excess liquidity in the market.

Meanwhile, the central bank sold NT$30 billion in 20-year government bonds at an average awarded yield of 3.053%.

The benchmark 10-year government bonds were last quoted at 2.215%, compared with 2.2015% Friday.