Taiwan Dollar Falls to One-Week Low as Export Growth Slows
Taiwan’s dollar fell to a one-week low before a finance ministry report that showed export growth cooled the most since 2009. Bonds were steady.
Overseas shipments rose 1.3 percent in November from a year earlier, compared with an 11.7 percent gain the previous month, the government reported before the market closed. The median estimate of analysts surveyed by Bloomberg News was for an 8.6 percent gain. Taiwan’s currency has lost 4.6 percent this half as Europe’s worsening debt crisis sapped export demand.
“The global economy is not stable,” said Henry Lin, a Taipei-based foreign-exchange trader at Taiwan Shin Kong Commercial Bank. “Exports will slow down. Investors want to hold the U.S. dollar, which has more liquidity.”
Taiwan’s dollar closed 0.04 percent lower at NT$30.179 against its U.S. counterpart, according to Taipei Forex Inc. The currency touched NT$30.239 earlier, the weakest level since Dec. 1. It may decline to NT$30.50 by year-end, Lin said.
Machinery orders in Japan, Taiwan’s fourth-largest export market, fell 6.9 percent in October from September, data showed today. That compared with the median forecast for a 0.5 percent gain in a Bloomberg News survey of economists.
Government bonds were little changed. The yield on the 2 percent bonds due July 2016 was 0.993 percent, compared with 0.992 percent yesterday, according to Gretai Securities Market.
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