Sept. 25 (Bloomberg) -- Taiwan’s dollar strengthened on speculation exporters are converting overseas earnings as the end of the month approaches. Government bonds were steady.
Global funds bought $142 million more local stocks than they sold today, taking net purchases in September to $1.8 billion, according to exchange data. Industrial production rose 1.89 percent last month from a year earlier, the most since February, official data showed yesterday. Export orders declined in August for a sixth month, a report showed last week.
“Volume’s a bit thin today, it’s mostly trade-related as exporters sell the greenback,” said Tarsicio Tong, a foreign-exchange trader at Union Bank of Taiwan in Taipei. “Although we’re seeing some improvements in industrial output data, exports numbers need to turn positive as well to give sentiment a boost.”
The Taiwan dollar gained 0.1 percent to NT$29.451 against its U.S. counterpart, according to Taipei Forex Inc. The currency reached NT$29.198 on Sept. 17, the strongest level since May 3. One-month non-deliverable forwards climbed 0.1 percent to NT$29.340, a 0.4 percent premium to the spot rate, according to data compiled by Bloomberg.
The yield on Taiwan’s 1.125 percent notes due September 2022 was 1.171 percent, compared with 1.175 percent yesterday, according to Gretai Securities Market. The overnight money-market rate was steady at 0.387 percent, a weighted average compiled by the Taiwan Interbank Money Center shows.
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