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 Rises for Second Day on Inflows; Bonds Steady

Don't Miss Out —
Follow us on:

Feb. 19 (Bloomberg) -- Taiwan’s dollar strengthened for a second day after overseas investors boosted holdings of the island’s shares on optimism economic growth is gaining momentum. Government bonds were little changed.

Global funds bought $193 million more local stocks than they sold in the past two days, taking net purchases this year to $1.8 billion, according to exchange data. The island’s economy expanded 3.4 percent last quarter from a year earlier, according to the median estimate in a Bloomberg survey before finalized official data due Feb. 22. Gross domestic product increased 0.98 percent in the preceding three months.

The Taiwan dollar advanced 0.1 percent to NT$29.686 against its U.S. counterpart, according to prices from Taipei Forex Inc. It touched NT$29.752 yesterday, the weakest level in more than five months, after the Group of 20 nations refrained from censuring Japanese policies driving the yen’s decline.

“The economy is improving after a pretty bad year in 2012,” said Tarsicio Tong, a Taipei-based foreign-exchange trader at Union Bank of Taiwan. “The outlook for the local dollar is highly dependent on how much weaker the yen will go.”

The central bank has sold the local currency near the close on most days in the past 10 months, according to traders who asked not to be identified.

One-month implied volatility in the Taiwan dollar, a gauge of expected moves in the exchange rate used to price options, fell eight basis points, or 0.08 percentage point, to 5 percent, according to data compiled by Bloomberg.

The yield on the 1.125 percent bonds due March 2023 was little changed at 1.207 percent, according to Gretai Securities Market. The overnight interbank lending rate was steady at 0.385 percent, a weighted average compiled by the Taiwan Interbank Money Center showed.

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

To contact the editor responsible for this story: Amit Prakash at aprakash1@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.