Taiwan Dollar Gains on Greek Progress, China Reserve-Ratio Cut
Taiwan’s dollar advanced as optimism Greece is close to receiving a bailout encouraged risk-taking. Benchmark 10-year bond yields were steady near a two-month low.
European finance ministers will meet in Brussels today to reconcile demands made on Greek leaders for a 130 billion-euro ($172 billion) aid package for the country. Asian stocks rose after China announced a 50-basis point reduction in banks’ reserve ratios over the weekend. The Taiex (TWSE) index of shares rose 0.77 percent today.
“Investors are back on risk-on mode as the Greek situation is more positive,” said George Pu, a Taipei-based fixed-income trader at Sinopac Securities Corp. “China’s move was expected by the market.”
The Taiwan dollar strengthened 0.1 percent to close at NT$29.554 against its U.S. counterpart, according to Taipei Forex Inc.
The yield on the government’s 1.25 percent bonds due March 2022 was 1.271 percent, from 1.272 percent on Feb. 17, prices from Gretai Securities Market show. Benchmark 10-year rates were steady at 1.27 percent after touching 1.26 percent on Feb. 16, the lowest closing level since Dec. 19.
The overnight money-market rate, which measures interbank funding availability, was little changed at 0.397 percent, according to a weighted average compiled by the Taiwan Interbank Money Center.
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