Taiwan’s dollar finished higher after trimming gains in the last minute of trading on speculation the central bank intervened to check appreciation that my hurt exporters.
The central bank bought the U.S. dollar, according to two traders who declined to be identified. The currency has gained 2.9 percent so far this quarter, the best performance in Asia, as overseas investors bought $3.6 billion more Taiwanese equities than they sold. The island’s economy expanded 9.8 percent in the third quarter from a year earlier and will grow 9.98 percent this year and 4.51 percent in 2011, the government said Nov. 18.
“Growth in Taiwan and other Asian economies attracts overseas funds,” said Henry Lin, a Taipei-based foreign- exchange trader at Taiwan Shin Kong Commercial Bank. “The central bank will continue to act to reduce gains.”
The Taiwan dollar strengthened 0.2 percent to close at NT$30.788 versus the greenback, according to Taipei Forex Inc. The currency was trading 1.6 percent stronger at NT$30.360 one minute before the 4 p.m. close.
Central Bank of China (Taiwan) Governor Perng Fai-nan said in parliament in Taipei on Nov. 29 that he wants to reduce speculative cash inflows by half from current levels.
Taiwan’s government bonds were little changed. The yield on the 2 percent note due July 2015 was at 0.990 percent, compared with 0.988 percent yesterday, according to Gretai Securities Market, the island’s biggest exchange for bonds.