Feb. 15 (Bloomberg) -- Taiwan’s dollar strengthened the most in two weeks and government bonds reversed gains after China said it will help resolve Europe’s debt crisis.
The local Taiex index of shares advanced 1.5 percent, rising above 8,000 for the first time since August, after People’s Bank of China Governor Zhou Xiaochuan said in a speech in Beijing today that the world’s second-biggest economy will participate in efforts to boost financial stability in the euro area. Global funds bought $336 million more local stocks than they sold today, according to exchange data.
“There’s a lot of money coming in today as the Taiex hit that 8,000 psychological level,” said Tarsicio Tong, a currency trader at Union Bank of Taiwan in Taipei. “There’s a very positive correlation between Taiwan stock’s performance and the Taiwan dollar.”
The Taiwan dollar gained 0.2 percent to NT$29.535 against its U.S. counterpart, according to Taipei Forex Inc. It touched NT$29.370 on Feb. 10, the strongest level since Sept. 13.
The yield on the government’s 1.25 percent notes due March 2022, the most-traded government securities, was little changed at 1.265 percent, prices from Gretai Securities Market show. It dropped one basis point to 1.255 percent earlier.
The overnight money-market rate, which measures interbank funding availability, was unchanged at 0.398 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 email@example.com
To contact the editor responsible for this story: Sandy Hendry at firstname.lastname@example.org