March 1 (Bloomberg) -- Taiwan’s dollar reversed gains after reaching the strongest level in almost six months on speculation the central bank will limit gains to support the island’s exporters. Government bonds were little changed.
The currency, which was up as much as 0.4 percent earlier, fell on suspected intervention by the central bank, according to two traders who refused to be identified as the monetary authority doesn’t disclose such details. Global funds bought $140 million more Taiwanese shares than they sold today, according to exchange data. Official data last week showed export orders fell 8.63 percent in January from a year ago, and industrial production plunged 16.46 percent in the same period.
“The state of the economy doesn’t justify huge currency gains,” said Tarsicio Tong, a currency trader at Union Bank of Taiwan in Taipei. “Concern over economic growth is still there.”
The Taiwan dollar fell 0.2 percent to NT$29.487 against its U.S. counterpart, according to Taipei Forex Inc. The currency reached NT$29.300 earlier, the strongest level since Sept. 9.
The yield on the government’s 1.25 percent bonds due March 2022 was little changed at 1.28 percent, prices from Gretai Securities Market show. The overnight money-market rate, which measures interbank funding availability, dropped one basis point, or 0.01 percentage point, to 0.395 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