Nov. 7 (Bloomberg) -- Taiwan’s dollar weakened on concern Europe’s debt crisis is worsening even as the island’s government reported exports increased by more than economists forecast in October. Government bonds were steady.
Exports gained 11.7 percent in October from a year earlier, more than double the 5 percent rise predicted by analysts surveyed by Bloomberg, a report released shortly before the close of currency trading showed. Asian stocks retreated as doubts about Greece’s plans for a national unity government to secure international aid prompted investors to spurn riskier assets such as emerging-market shares.
“Taiwan’s economy is very much dependent on the global environment,” said James Wang, a fixed-income trader at Yuanta Securities Co. in Taipei.
Taiwan’s dollar retreated 0.3 percent to NT$30.108 against its U.S. counterpart, according to Taipei Forex Inc. The yield on the 2 percent bonds due July 2016, the most-traded government securities, was little changed at 1.04 percent, prices from Gretai Securities Market show. The rate dropped four basis points, or 0.04 percentage point, last week, the most for benchmark five-year securities since the period ended Sept. 9.
“Worsening economic prospects are good for bonds,” Wang said. “But yields are already so low, there’s not much room to drop further.”
Consumer prices rose 1.22 percent last month from a year ago, compared with the 1.34 percent increase predicted by economists surveyed by Bloomberg, data showed today.
The overnight money-market rate, which measures interbank funding availability, was steady at 0.397 percent, according to a weighted average compiled by the Taiwan Interbank Money Center.
--Editors: Andrew Janes, Ven Ram
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