Bloomberg Anywhere Remote Login Bloomberg Terminal Request a Demo

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 Forwards Decline on Growth Concern; Bonds Steady

Sept. 18 (Bloomberg) -- Taiwan dollar forwards retreated for a second day as declines in global equities deterred investors from holding riskier assets. Bonds were little changed.

The Taiex index of shares snapped a seven-day rally following a decline in the Standard & Poor’s 500 Index yesterday. Taiwan will report on Sept. 20 export orders fell 2 percent in August from a year earlier, following a 4.4 percent slump in July, according to the median estimate of economists in a Bloomberg survey.

“Risk-taking sentiment is weaker as everyone’s calmed down after the QE3 announcement,” said Albert Lee, a Taipei-based fixed-income trader at Cathay United Bank Co., referring to the third round of quantitative easing measures unveiled by the Federal Reserve last week. “We’re back on looking at fundamentals.”

One-month non-deliverable forwards fell 0.2 percent to NT$29.35 against the greenback, a second day of depreciation, according to data compiled by Bloomberg. The contracts are at a 0.4 percent premium to the NT$29.46 spot rate.

Government bonds were little changed before the Ministry of Finance sells NT$35 billion ($1.2 billion) of 10-year securities tomorrow. The yield on Taiwan’s 1.125 percent notes due September 2022 was at 1.201 percent, according to Gretai Securities Market.

The central bank, which has kept its benchmark rate at 1.875 percent since June 2011, will meet to review borrowing costs on Sept. 20.

The currency has rallied 0.8 percent since Sept. 13, when the Fed said it will start open-ended purchases of $40 billion of mortgage debt per month, and hold interest rates near zero at least through mid-2015.

The overnight money-market rate held at 0.388 percent, a weighted average compiled by the Taiwan Interbank Money Center shows.

-- Editors: Amit Prakash, Simon Harvey

To contact the reporter on this story: Andrea Wong in Taipei at awong268@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.