Taiwan’s Central Bank Says Will Step in If Currency ‘Overshoots’

Taiwan’s central bank said it will step into the foreign-exchange market when the local dollar “overshoots,” in an echo of concerns across emerging nations that surging currencies threaten exports and financial stability.

“The Taiwan dollar exchange rate is in principle determined by the market, but if irregular factors, such as short-term, big-volume fund flows and seasonal issues, cause the currency to overshoot and lead to disorder, the central bank will maintain order in the foreign-exchange market,” Governor Perng Fai-nan said in a report released today in Taipei ahead of a parliamentary audit.