March 6 (Bloomberg) -- Taiwan’s dollar fell, reversing earlier gains, as global funds cut holdings of the island’s shares on concern a recovery in Asia is slowing. Government bonds rose.
The Taiex index of shares declined 0.8 percent as international investors sold $44.8 million more Taiwanese stocks than they bought, a second day of net sales, according to exchange data. The Bloomberg-JPMorgan Asia Dollar Index fell for a third consecutive day after Chinese Premier Wen Jiabao said his government will aim for economic growth of 7.5 percent, compared with a goal of 8 percent in place since 2005.
The Taiwan dollar slipped 0.1 percent to NT$29.538 against its U.S. counterpart, the weakest level since Feb. 29, according to Taipei Forex Inc. It rose as much as 0.1 percent earlier.
“Taiwan stocks’ performance is dragging down the local dollar,” said Henry Lin, a Taipei-based foreign-exchange trader at Taiwan Shin Kong Commercial Bank. “The Taiwan dollar should remain between NT$29.45 and NT$29.55 while the Taiex consolidates.”
Taiwan’s consumer prices rose 0.25 percent last month from a year earlier, compared with a 2.37 percent increase in January, the statistics bureau said yesterday.
The yield on the government’s 1.25 percent notes due March 2022 fell one basis point to 1.252 percent, the lowest close for benchmark 10-year rates since Dec. 16, prices from Gretai Securities Market showed.
The overnight money-market rate, which measures interbank funding availability, was little changed at 0.397 percent, according to a weighted average compiled by the Taiwan Interbank Money Center.
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