Nov. 8 (Bloomberg) -- Taiwan’s dollar erased earlier gains to close little changed on concern Europe’s debt crisis is worsening. Government bonds were steady.
The currency rose as much as 0.2 percent earlier after the government reported yesterday exports climbed 11.7 percent in October from a year earlier, compared with a 9.9 percent increase the previous month. The median of 13 estimates in a Bloomberg survey of economists was for a 5 percent gain. A parliamentary vote today in Italy, where borrowing costs have surged, will show whether Prime Minister Silvio Berlusconi has enough support to stay in power and implement austerity measures.
“Italy is a much bigger economy and a bigger threat to the euro zone than Greece,” said Frances Cheung, a Hong Kong-based strategist at Credit Agricole CIB. “Not only Taiwan, but other Asian countries’ exports will also be disrupted by Thailand’s floods.”
Taiwan’s dollar closed little changed at NT$30.106 against its U.S. counterpart, according to Taipei Forex Inc. The yield on the 2 percent bonds due July 2016, the most-traded government securities, was little changed at 1.04 percent, prices from Gretai Securities Market show.
Consumer prices rose 1.22 percent in October from a year earlier, compared with a revised 1.37 percent the previous month, data showed yesterday. The median forecast in a Bloomberg survey was for a 1.34 percent increase.
The overnight money-market rate, which measures interbank funding availability, was steady at 0.397 percent, according to a weighted average compiled by the Taiwan Interbank Money Center.
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