Taiwan Dollar Rises to 14-Month High on Improving Chinese Data

Taiwan’s dollar advanced to a 14- month high as data indicating a pickup in the Chinese economy brightened the outlook for the island’s exports. Government bonds were little changed.

Retail sales growth in Asia’s largest economy accelerated to 14.5 percent in October from 14.2 percent the previous month, while exports rose 11.6 percent, compared with a 9.9 percent increase in September, official figures showed on Nov. 9 and Nov. 10. China is Taiwan’s largest export market. Europe’s finance chiefs will try to reach an agreement on maintaining Greek solvency at a meeting today.

“The Taiwan dollar is stronger in response to the Chinese data,” said Suan Teck Kin, an economist at United Overseas Bank Ltd. in Singapore. “The risk-off sentiment is still around. In Europe, the situation hasn’t cleared up.”

The Taiwan dollar climbed 0.2 percent to NT$29.09 against the greenback, according to Taipei Forex Inc. The currency was 0.6 percent up a minute before close of trading and reached NT$28.959 earlier, the strongest level since Sept. 1, 2011. One- month implied volatility, a measure of exchange-rate swings used to price options, dropped 18 basis points, or 0.18 percentage point, to 4.3 percent.

Taiwan’s central bank has intervened to stem advances in the currency in the final minutes of trading on most days in the past five months, according to traders who asked not to be identified. Central banks intervene in currency markets by arranging purchases or sales of foreign exchange.

Greek Prime Minister Antonis Samaras secured support from a majority of lawmakers for the nation’s 2013 budget, which is needed to unlock an international bailout.

The yield on the government’s 1.125 percent bonds due September 2022 was 1.124 percent, compared with 1.120 percent on Nov. 9, according to Gretai Securities Market. The overnight interbank lending rate was steady at 0.387 percent, a weighted average compiled by the Taiwan Interbank Money Center shows.

To contact the reporters on this story: Lilian Karunungan in Singapore at lkarunungan@bloomberg.net; Yumi Teso in Bangkok at yteso1@bloomberg.net

To contact the editor responsible for this story: James Regan at jregan19@bloomberg.net

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