Taiwan’s Dollar Drops, Snapping Two-Day Gain, on Stock Outflows
Global funds sold $116 million more Taiwanese stocks than they bought today, extending this month’s net sales to $1.7 billion, exchange data show. Export orders climbed 9.2 percent in June from a year earlier, the slowest growth in four months, the government reported yesterday.
“Looks like there was some demand for the U.S. dollar from importers toward the end of trading,” said Tarsicio Tong, a Taipei-based foreign-exchange trader at the Union Bank of Taiwan.
The Taiwan dollar declined 0.1 percent to NT$28.890 against its U.S. counterpart as of the 4 p.m. local close, according to Taipei Forex Inc. The currency will likely trade between NT$28.79 and NT$29.00 in the near future, Tong said.
Government bonds declined. The yield on the 2 percent notes due July 2016, the most-traded government debt, rose one basis point to 1.20 percent, prices from Gretai Securities Market show.
The overnight money-market rate, which measures interbank funding availability, was little changed at 0.377 percent from 0.376 percent yesterday, according to a weighted average compiled by the Taiwan Interbank Money Center.
To contact the reporter on this story: Andrea Wong in Taipei at email@example.com
To contact the editor responsible for this story: Sandy Hendry at firstname.lastname@example.org