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Taiwan dollar at 1-week high on exporter demand
Reuters - 2 hours 44 minutes ago
TAIPEI, Dec 29 - The Taiwan dollar edged up to a one-week closing high in thin trade on Monday as exporters bought the local currency to meet needs at home, the U.S. dollar sank globally and regional currencies strengthened. The Taiwan dollar <TWD=TP> rose to a high of T$32.980 against the U.S. dollar and closed at T$33.000 in its fourth consecutive session of rises.
Volume on the Taipei Forex Inc exchange was thin at $474 million, lower than Friday's $492 million as most investors stayed away during the year-end holiday period.
"Exporters dominated much of trading today," said a dealer in Taipei. "Volumes were very low, and today's rise was reflective of the U.S. dollar's recent weakness."
Exporters, who prefer a weaker Taiwan dollar so they can convert U.S. dollar earnings to more of the Taiwan dollar, usually buy the local currency around the end of each month for cash needs at home.
Also boosting the local currency, the U.S. dollar fell as investors turned to traditional safe havens such as oil and gold as conflict intensified between Israel and Hamas in the Gaza Strip.
The Taiwan dollar's gains tracked the South Korean won closely, as both economies depend on exports. The won <KRW=KFTC> rose as South Korean foreign exchange authorities aggressively sold U.S. dollars.
The Taiwan dollar has fallen 10 percent since rallying to a 10-1/2-year high in late March, when investors anticipated better relations between the island and political rival China under China-friendly President Ma Ying-jeou.
On the smaller Cosmos exchange <COSMOS1>, the Taiwan dollar strengthened to T$32.990 from Friday's close of T$33.000.
(Reporting by Kelvin Soh and Yvette Chen, Editing by Jacqueline Wong)
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