The New Taiwan Dollar continued its rise against the greenback, advancing NT$0.10 to close at NT$29.70 Jan. 11, the highest level in 13 years.
Currency market dealers said the NT dollar rallied throughout the day, surging NT$0.62 to NT$29.18 as institutional foreign investors poured NT$12.8 billion into net stock purchases.
Following intervention by the ROC Central Bank, the NT dollar gave up most of its gains to post a 0.34-percent rise—one of the best performances against the U.S. dollar.
According to dealers, the NT dollar is expected to move toward NT$29.10 on the back of increasing foreign investment in local stock and real estate markets.
In related news, the Taiwan Stock Exchange Capitalization Weighted Stock Index, or TAIEX, increased 113.48 points to close at 8,931.36 on turnover of NT$132.11 billion.
Since the central bank is planning to buy back NT$30 billion in government bonds at the end of the month, dealers expect the market to rise further as bond holders are likely to channel the extra funds into stock purchases. (JSM)
Write to Audrey Wang at audrey@mail.gio.gov.tw