Bloomberg the Company & Products

Bloomberg Anywhere Login

Bloomberg

Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world.

Company

Financial Products

Enterprise Products

Media

Customer Support

  • Americas

    +1 212 318 2000

  • Europe, Middle East, & Africa

    +44 20 7330 7500

  • Asia Pacific

    +65 6212 1000

Communications

Industry Products

Media Services

Follow Us

Taiwan Dollar Has Weekly Drop as Economy Shrinks; Bonds Steady

Aug. 17 (Bloomberg) -- Taiwan’s dollar completed a weekly loss as data showed the gross domestic product shrank more than estimated and the government cut its economic estimates.

The currency and local stocks erased gains today as the statistics bureau reported that GDP contracted 0.18 percent in the three months through June from a year earlier, compared with a July 31 estimate for a 0.16 percent drop. The island’s economy will expand 1.66 percent this year, the bureau forecast today, compared with an earlier projection of 2.08 percent.

“The authorities will want to help the exporters by keeping the Taiwan dollar on a depreciation bias,” said James Wang, a fixed-income trader at Yuanta Securities Co. in Taipei.

Taiwan’s dollar declined 0.1 percent this week to NT$30.025 against its U.S. counterpart, the lowest level since Aug. 13, according to Taipei Forex Inc. One-month implied volatility, a measure of exchange-rate swings used to price options, dropped seven basis points, or 0.07 percentage point, to 3.40 percent from a week ago.

Exports may shrink 1.72 percent this year, compared with an earlier forecast for a 0.07 percent gain, the statistics bureau said. Orders for shipments probably fell 2.98 percent in July from a year earlier, versus a 2.62 percent drop in June, according to a Bloomberg survey before data due Aug. 20.

Global funds bought $789 million more Taiwanese shares than they sold this week through yesterday, compared with $1.7 billion last week.

The yield on Taiwan’s 1.25 percent bonds due March 2022 was little changed at 1.182 percent versus 1.177 percent on Aug. 10, according to Gretai Securities Market. The overnight money-market rate was steady at 0.386 percent, according to a weighted average compiled by the Taiwan Interbank Money Centre.

To contact the reporter on this story: David Yong in Singapore at dyong@bloomberg.net.

To contact the editor responsible for this story: James Regan at jregan19@bloomberg.net

Please upgrade your Browser

Your browser is out-of-date. Please download one of these excellent browsers:

Chrome, Firefox, Safari, Opera or Internet Explorer.