Bloomberg News

Taiwan Dollar Rebounds on Speculation Companies Sold Greenback

November 17, 2011

Nov. 17 (Bloomberg) -- Taiwan’s dollar rebounded on speculation exporters took advantage of the currency’s drop to a three-week low to sell U.S. dollars. Government bonds declined.

The currency fell as much as 0.2 percent earlier as global funds sold $127 million more local stocks than they bought today, according to exchange data. Economists forecast data next week will show export orders gained 3.8 percent in October from a year earlier, after a 2.7 percent increase in September that was the smallest in two years, according to a Bloomberg survey. Fitch Ratings said yesterday Europe’s debt crisis will pose a “serious risk” to U.S. banks.

“Some exporters sold the greenback in the afternoon as the level was quite good for them,” said Tarsicio Tong, a trader at Union Bank of Taiwan in Taipei. “But volumes remained thin. Investors are still uncertain about what will happen in Europe.”

Taiwan’s dollar strengthened 0.1 percent to NT$30.21 against its U.S. counterpart, according to Taipei Forex Inc. It touched NT$30.29 earlier, the weakest level since Oct. 24.

The yield on Taiwan’s 1.25 percent bonds due September 2021 increased one basis point to 1.337 percent, prices from Gretai Securities Market show.

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

--Editors: Andrew Janes, Anil Varma

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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