Taiwan Dollar Declines Most in Two Weeks After U.S. Jobs Report

Taiwan’s dollar fell the most in two weeks as demand for the greenback strengthened after U.S. payrolls data beat estimates.

The Bloomberg Dollar Index climbed 0.1 percent today and 0.2 percent on March 7, when a report showed U.S. employers added 175,000 positions in February, more than the 149,000 median estimate in a Bloomberg survey and the revised 129,000 increase in January. That damped speculation the Federal Reserve would slow its tapering of stimulus. China’s yuan fell today as the country’s central bank cut the fixing by the most since July 2012 following an unexpected drop in exports.

“Last week’s U.S. non-farm payrolls data beat expectations, which caused the U.S. dollar to rebound and Asian currencies to fall today,” said Cindy Yu, a Taipei-based economist at Fubon Commercial Bank. While the relationship doesn’t always hold, “the yuan also has more or less some impact on Asian currencies,” she said.

Taiwan’s dollar declined 0.1 percent to NT$30.325 against its U.S. counterpart, prices from Taipei Forex Inc. show. That was the biggest drop since Feb. 24. The currency slipped 0.1 percent in the last two minutes of trading amid suspected central bank intervention. The monetary authority has sold the local dollar in the run-up to the close on most days since March 2012, according to traders who asked not to be identified.

One-month non-deliverable forwards on Taiwan’s dollar declined 0.1 percent, the biggest drop since Feb. 27, to NT$30.257 against the greenback, data compiled by Bloomberg show. One-month implied volatility, a gauge of expected moves in the exchange rate used to price options, decreased one basis point, or 0.01 percentage point, to 3.37 percent, data compiled by Bloomberg show.

The yield on the 1.5 percent sovereign bonds due March 2024 was little changed at 1.602 percent, prices from Gretai Securities Market show. The overnight interbank lending rate was steady at 0.387 percent, a weighted average compiled by the Taiwan Interbank Money Center showed.

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