Currencies
Taiwan Forwards Near Most Extreme in Decades Show US Dollar Pain
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A Taiwan-dollar derivative that’s popular with the island’s largest life insurers is pointing to further gains for the currency, even after a surge of as much as 5% Monday to a three-year high.
The spread between the spot rate and one-year non-deliverable forwards on the Taiwan dollar-US dollar currency pair swelled to around 3,000 pips at one point on Monday, the widest level in at least two decades, according to data compiled by Bloomberg.