Taiwan Dollar Advances Most Since 2013 on U.S. Data, Rising Yen

Taiwan’s dollar rose the most in 18 months after U.S. retail sales missed estimates and the Bank of Japan signaled it may refrain from additional stimulus.

The Bloomberg Dollar Spot Index, which tracks the greenback against 10 peers, fell the most since 2013 on Thursday after a report showed January sales dropped twice as much as economists surveyed by Bloomberg had forecast. The yen jumped 1.1 percent Thursday after people familiar with the Bank of Japan’s talks said policy makers viewed further monetary easing as counterproductive for now. Taiwan’s dollar often tracks the currencies of export rivals Japan and South Korea.

“The U.S. retail sales number wasn’t good, which triggered a weaker U.S. dollar overnight and stronger Asian currencies today,” said Cindy Yu, an economist at Taipei Fubon Commercial Bank Co. in the city. “The BOJ comments also lifted the yen against the dollar, which gave support to the Taiwan dollar.”

Taiwan’s currency closed 0.5 percent stronger at NT$31.475 against the greenback in the biggest one-day gain since Aug. 5, 2013, Taipei Forex Inc. prices show. The currency rose 0.1 percent this week. One-month non-deliverable forwards advanced 0.4 percent Friday and 0.8 percent from Feb. 6 to NT$31.413, according to data compiled by Bloomberg.

Foreign investors bought $1.2 billion more Taiwanese shares than they sold in the five days through Friday, the fourth straight week of inflows, exchange data show.

U.S. retail purchases fell 0.8 percent last month, compared with the median estimate in a Bloomberg survey for a 0.4 percent drop.

Government bonds declined this week, pushing the 10-year yield up six basis points, or 0.06 percentage point, to 1.61 percent, GreTai Securities Market prices show. The island’s debt market will be closed all of next week for the Lunar New Year holidays.

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