U.S. dollar closes higher on Taipei forex
Taipei, May 10 (CNA) The U.S. dollar rose against the Taiwan dollar on Wednesday, gaining NT$0.008 to close at NT$30.266.
Turnover totaled US$744 million during the trading session.
The greenback opened at NT$30.220 and moved between NT$30.216 and NT$30.290 before the close.
Despite the recent pullback, the local currency has risen about 7 percent against the greenback since the beginning of this year, which has led to concern that Taiwanese exporters could see their sales and earnings fall and that calls could be made for the central bank to intervene in the foreign exchange market.
The central bank should move to prevent international speculative capital inflows and outflows from affecting the forex market, said Eric Chuo (卓永財), chairman of HIWIN Technologies Corp., Taiwan's largest manufacturer of linear-motion devices, at a company shareholders meeting that day.
Noting that 80 percent of the company's sales rely on exports, Chuo said a fast appreciation of the local currency could significantly affect its turnover and margins.
While businesses should upgrade to increase their added value and reduce the effects of fluctuations in foreign exchange rates, the central bank should maintain a stable exchange rate for its domestic currency because a rise or fall in domestic currency is closely related to the country's national competitiveness, according to Chuo.
He suggested that the central bank should exclude international hot money inflows in order to lessen the impact on the local forex market.