Oct. 21 (Bloomberg) -- Taiwan’s dollar fell for a second day after data showed export orders rose at the slowest pace in two years, leading to a sell-off of local stocks. Government bonds were steady with yields at the lowest level this week.
Overseas orders, an indication of shipments in the next one to three months, grew 2.72 percent last month from a year earlier, the government reported toward the end of currency trading yesterday. The median estimate of economists in a Bloomberg survey was for a 3.46 percent increase. Global funds sold $69 million more local shares than they bought today, taking net sales for the year to $10.1 billion, according to exchange data.
“The weak export orders data just adds to more and more evidence that Taiwan’s economy will slow,” said James Wang, a fixed-income trader at Yuanta Securities Co. in Taipei. “Looking forward, Taiwan yields will go down.”
Taiwan’s dollar weakened 0.1 percent to NT$30.299 against its U.S. counterpart, according to Taipei Forex Inc. It touched NT$30.351 earlier, the lowest level this week. The currency was little changed this week.
The yield on the 2 percent bonds due July 2016 gained one basis point, or 0.01 percentage point, today and by the same amount this week to 1.049 percent, prices from Gretai Securities Market show.
The overnight money-market rate, which measures interbank funding availability, was steady at 0.390 percent, according to a weighted average compiled by the Taiwan Interbank Money Center.
To contact the reporter on this story: Andrea Wong in Taipei at firstname.lastname@example.org
To contact the editor responsible for this story: Sandy Hendry at email@example.com