Bloomberg News

Taiwan Dollar Rises on Berlusconi Offer to Resign; Bonds Steady

November 09, 2011

Nov. 9 (Bloomberg) -- Taiwan’s dollar strengthened after Italian Prime Minister Silvio Berlusconi’s offer to quit bolstered optimism Europe will contain a debt crisis that threatens global economic growth. Government bonds were steady.

Benchmark stock indexes advanced across most of Asia today after Berlusconi said last night he’d step down as soon as parliament passes austerity measures pledged to European Union allies. The outlook for trade also brightened as China reported the slowest inflation in five months, giving policy makers in Taiwan’s biggest export market move room to ease monetary policy.

“Looks like Berlusconi’s set to quit; that boosted stocks and currencies today,” said Tarsicio Tong, a Taipei-based trader at Union Bank of Taiwan. “China’s inflation cooling provides the conditions needed for Chinese officials to unwind monetary tightening. That’s good news for China’s economy.”

Taiwan’s dollar climbed 0.1 percent to NT$30.066 against its U.S. counterpart, according to Taipei Forex Inc. It reached NT$29.73 on Oct. 31, the strongest level since Sept. 19.

China’s consumer prices rose 5.5 percent in October from a year earlier, the government reported today. That matched the median estimate of economists surveyed by Bloomberg.

The yield on Taiwan’s 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 overnight money-market rate, which measures interbank funding availability, was steady at 0.398 percent, according to a weighted average compiled by the Taiwan Interbank Money Center.

--Editors: James Regan, Simon Harvey

To contact the reporter on this story: Andrea Wong in Taipei at

To contact the editor responsible for this story: Sandy Hendry at

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