Nov. 16 (Bloomberg) -- Taiwan dollar forwards had the worst week in more than five months as overseas investors cut holdings of the island’s stocks amid concern a global slowdown will hurt exports. Government bonds were steady.
Global funds sold $458 million more local shares than they bought this week, according to exchange data. Export orders declined 0.5 percent in October from a year earlier, after a 1.9 percent gain the previous month, according to the median estimate of economists in a Bloomberg survey before official data due Nov. 20. The Taiwan dollar reached NT$28.959 on Nov. 12, the strongest level in 14 months.
“Investors think there isn’t much room for the currency to appreciate further,” said Tarsicio Tong, a Taipei-based foreign-exchange trader at Union Bank of Taiwan. “We’re seeing foreign funds pull out as well.”
One-month non-deliverable forwards weakened 0.6 percent to NT$29.1 versus the greenback this week as of 4:26 p.m. in Taipei, according to data compiled by Bloomberg. That’s the biggest weekly drop since the five-day period ended June 1. The contracts slipped 0.4 percent today and were at a 0.6 percent premium to the spot rate, which retreated 0.4 percent from a week ago to NT$29.272, based on Taipei Forex Inc. prices.
The yield on the government’s 1.125 percent bonds due September 2022 was 1.12 percent, little changed from Nov. 9, according to Gretai Securities Market. The overnight interbank lending rate was steady at 0.387 percent, a weighted average compiled by the Taiwan Interbank Money Center shows.
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