NT$ ends down on central bank's intervention

Taipei, Aug. 15, 2003 (CENS)--The New Taiwan dollar ended slightly lower against its U.S. counterpart yesterday on intervention by the central bank, dealers said.

The local unit closed the session at NT$34.387, compared with Wednesday's NT$34.385. Total turnover at the Taipei Foreign Exchange fell to US$352 million from US$453 million in the previous session.

The local currency opened lower at N$34.415 and was trading between NT$34.356 and NT$34.450 during the session.

The local currency was trading higher at NT$34.360-NT$34.380 during the most part of the session due to continued inflows of foreign equity funds, dealers said.

Foreign investors bought a net of NT$8.42 billion worth of shares in the main market yesterday, extending a net-buy of NT$8.87 billion in the previous session.

However, the central bank stepped in to buy the U.S. dollar at the last 15 minutes of trade, eventually weighing down the local unit, dealers said.

Dealers estimated that the central bank bought some US$30 million to cap the appreciation of the N.T. dollar.

Meanwhile, the average interest rate for local interbank overnight loans was trading flat at 1.024%, unchanged from previous session.

The central bank did not sell any certificates of deposit or negotiable CDs, though NT$30 billion worth of the government paper matured during the session.

The benchmark 10-year government bonds were last yielding 2.31% versus 2.30% Wednesday, after declines in the U.S. Treasury bills overnight, dealers said.