Taiwan Dollar Drops, Bonds Rise as Export Growth May Have Slowed
Overseas shipments increased 8.6 percent from a year earlier, after climbing 11.7 percent in October, according to the median estimate of economists in a Bloomberg survey before government data due on Dec. 8. The economy expanded 3.4 percent in the third quarter, the least in two years, official data show.
“The Taiwan dollar is going to weaken toward the year- end,” said Teck Kin Suan, a Singapore-based economist at United Overseas Bank Ltd. “The downside risk is still there for Asian currencies, including the Taiwan dollar, that are exposed to fund outflows and volatilities from Europe.”
The Taiwan dollar depreciated 0.1 percent to close at NT$30.182 against its U.S. counterpart, according to Taipei Forex Inc. The yield on the 2 percent bonds due July 2016 fell one basis point to 0.984 percent, prices from Gretai Securities Market show.
The island’s consumer prices rose 1.01 percent in November from a year earlier, the statistics bureau said in Taipei today. The median of 16 estimates in a Bloomberg News survey was for a 1.23 percent gain.
Taiwan will auction NT$100 billion of 364-day certificates of deposits on Dec. 9, according to a statement on the central bank website today.
To contact the reporter on this story: Kyoungwha Kim in Singapore at email@example.com
To contact the editor responsible for this story: Sandy Hendry at firstname.lastname@example.org