Taiwan Dollar Drops a Fourth Day on Fund Outflow, Export Concern
Taiwan’s dollar fell for a fourth day, the longest losing streak in a month, after global funds cut holdings of the island’s stocks on concern a global slowdown will hurt exports. Government bonds were little changed.
The central bank will step in to “maintain order” in the local dollar’s exchange rate, Governor Perng Fai-nan said yesterday. Overseas investors sold $262 million more Taiwanese shares than they bought today, according to exchange data. Government trade figures due next week are expected to show exports increased 5.4 percent in October from a year earlier, according to the median estimate of economists in a Bloomberg survey. That would be the smallest gain in two years.
“There’s a lot of bad news coming from both Taiwan and overseas that point to a slowing global economy,” said Tarsicio Tong, a Taipei-based trader at the Union Bank of Taiwan. “Maintaining the Taiwan dollar’s stability is one big objective of the central bank.”
Taiwan’s dollar fell 0.3 percent to NT$30.220 against its U.S. counterpart, according to Taipei Forex Inc. The currency has lost 1.2 percent this week and touched 30.24 today, the weakest level since Oct. 24.
The yield on the 2 percent bonds due July 2016, the most- traded government securities, was steady at 1.04 percent, prices from Gretai Securities Market show. That’s the lowest level in three weeks.
The overnight money-market rate, which measures interbank funding availability, was little changed at 0.399 percent, according to a weighted average compiled by the Taiwan Interbank Money Center.
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