The USD/TWD sinks to 29.200, its lowest onshore session close since hitting 29.142 three weeks ago, as the assurance of continued quantitative easing policy from President Barack Obama's re-election causes the U.S. dollar to fall broadly in Asia, say two local traders. For the short-term, they tip the pair to test support at 20.000, with resistance at 29.250. The local central bank was suspected of buying greenbacks around 29.165 late in Wednesday's session to stem the local currency's strength. "Taiwan is a smaller market than others in Asia, but we are still seeing hot money inflows. The continuation of U.S. quantitative easing will push more money into Asia," says one of the traders. The Taiex rises 0.7% to 7287.18 Wednesday, with foreign investors net buyers of NT$4.30 billion worth of Taiwan shares.
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