The extended gains seen in the local equity market on the back of foreign institutional buying helped the Taiwan dollar move higher, which stopped the U.S. dollar's two-day rise, they said.
The greenback opened at NT$31.490, and moved between NT$31.450 and NT$$31.520 before the close. Turnover totaled US$587 million during the trading session.
Soon after the local foreign exchange market opened, the U.S. dollar faced profit taking and fell into consolidation mode amid cautious sentiment over the U.S. president vote, dealers said.
A decision by the U.S. Federal Bureau of Investigation not to pursue charges against the Democratic Party presidential candidate Hillary Clinton over her email controversy is believed to have boosted her chance of defeating Republic rival Donald Trump, dealers said.
However, with the vote imminent, currency traders in Taiwan chose to stand on the sidelines, which kept turnover on the local foreign exchange low and limited the trading range of the U.S. dollar, they said.
During the session, the U.S. dollar weakened slightly as local currency traders took cues from the gains posted by the local equity market to pick up the Taiwan dollar, dealers said.
According to the Taiwan Stock Exchange, foreign institutional investors bought a net NT$2.20 billion (US$69.84 million) worth of shares on the main board, pushing up the weighted index 0.30 percent at the close of trading on Tuesday.
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