Economics
Taiwan Dollar Forwards Fall This Week as Yen Drops; Bonds Steady
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Taiwan dollar forwards had their biggest weekly loss in seven months on speculation a weakening yen will prompt the island’s central bank to step up efforts to prevent gains in the local currency.
Premier Sean Chen asked the island’s central bank and economic affairs ministry to closely monitor the effects of the Bank of Japan’s monetary easing measures aimed at weakening the yen, which has dropped 12 percent versus the dollar in the past three months. Japan’s Deputy Economy Minister Yasutoshi Nishimura said yesterday the currency’s decline isn’t over after the Bank of Japan announced open-ended easing to revive the economy. Taiwan’s electronics manufacturers compete globally against Japanese counterparts.