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Global Exodus From Taiwan Stocks to Bring More Pain for Currency

  • Foreign funds sold $34 billion of island’s equities this year
  • Central bank’s less aggressive stance also hurts local dollar

Taiwan’s dollar just posted its worst first half of a year on record and analysts foresee more losses as overseas investors exit the island’s equities. 

The currency, which has dropped about 7% this year, may extend declines to a two-year low of 30.3 to the US dollar by the end of September, according to Barclays Bank Plc. Credit Agricole CIB predicts it will weaken to 30 this quarter, versus Friday’s close of 29.755.