May 11 (Bloomberg) -- Taiwan’s dollar rose to a 13-year high after China, the island’s biggest export market, pledged to boost domestic demand.
The local dollar gained for a third day as global funds bought $171 million more local stocks than they sold today, building on net purchases of $602 million in the last two days. China said yesterday it will seek to boost consumer spending and increase imports, according to a statement released following the annual Strategic and Economic Dialogue with U.S. officials.
“Asia will benefit if China imports more and the regional currencies will rise if the Chinese government accelerates appreciation,” said Tarsicio Tong, a Taipei-based currency trader at the Union Bank of Taiwan. Breaking through NT$28.50 is “a big psychological level,” he said.
Taiwan’s currency advanced 0.3 percent to close at NT$28.650 against the greenback, according to Taipei Forex Inc. It touched NT$28.476, the strongest level since October 1997.
The currency was trading 0.7 percent stronger at NT$28.513 one minute before the end of trading and pared gains on suspected intervention by the central bank, according to two traders who declined to be identified as the monetary authority doesn’t usually disclose such details.
Government bonds were little changed. The yield on the 1 percent note due January 2016, the most-traded government debt, was at 1.094 percent, compared with 1.092 percent yesterday, according to Gretai Securities Market.
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