The U.S. dollar slipped against the Taiwan dollar on Friday, a small win for Taiwanese importers and a mild headwind for the island's exporters.

• The greenback lost ground through the session and closed weaker against the Taiwan dollar.
• Trading was moderate, with under $2 billion changing hands.
• The dollar opened higher and drifted down for most of the day, staying in a narrow range.
• A stronger Taiwan dollar makes imported goods cheaper but squeezes chipmakers and other exporters who get paid in dollars.

Outlook: The currency is likely to keep trading in a tight range unless a shift in Fed policy or chip-sector demand pushes it out.