Adebowale, Adebolajo Found Guilty of U.K. Soldier Murder
Taiwan’s Dollar Strengthens for Third Month on Recovery Signs
Taiwan’s dollar advanced for a third month as official data showed the island’s economy rebounded in the third quarter. Government bonds rose.
Gross domestic product increased 1.02 percent from a year earlier, following a 0.18 percent decline in the three months through June, the statistics bureau said today. The median forecast of economists surveyed by Bloomberg News was for 1.5 percent growth. South Korea reported industrial production increased in September for the first time in four months, boosted by stronger sales of cars and electronics, buoying sentiment toward Taiwan that produces similar goods.
“Taiwan’s economy is starting to recover, and fundamentally it creates appreciation pressure,” said Frances Cheung, a strategist at Credit Agricole CIB in Hong Kong. “Still, the currency will have limited room for gains as Taiwan needs to maintain export competitiveness.”
Taiwan’s dollar rose 0.3 percent this month and 0.1 percent today to NT$29.260 against its U.S. counterpart, data from Taipei Forex Inc. showed. It touched NT$29.142 on Oct. 17, the strongest level since May 2. One-month implied volatility, a measure of exchange-rate swings used to price options, declined 21 basis points to 3.5 percent this month and was little changed today.
One-month non-deliverable forwards climbed 0.4 percent to NT$29.165 per dollar in October, according to data compiled by Bloomberg. They were little changed today.
Government bonds rallied this month. The yield on the 1.125 percent notes due September 2022 fell four basis points, or 0.04 percentage point, to 1.127 percent, according to Gretai Securities Market. It dropped one basis point today and is just 0.2 basis points shy of matching a record low of 1.125 percent for benchmark 10-year rates reached on July 26.
The overnight interbank lending rate was steady at 0.388 percent today, a weighted average compiled by the Taiwan Interbank Money Center shows.
To contact the reporter on this story: Andrea Wong in Taipei at email@example.com