Nov. 24 (Bloomberg) -- Taiwan’s dollar fell for a fifth day, the longest losing streak in two months, and government bonds rallied after factory production slowed and global funds cut holdings of local stocks.
The local dollar fell to the lowest in almost six weeks after foreign investors sold $356 million more Taiwanese shares than they bought yesterday, bringing net sales for the year to $10.4 billion, according to exchange data. Industrial production rose 1.4 percent in October from a year earlier, the slowest growth in more than two years, a government report showed yesterday.
“Many signs and economic indicators are pointing to slowing domestic growth,” said Tarsicio Tong, a trader at Union Bank of Taiwan in Taipei. “Further weakening of the Taiwan dollar in the next few days may prompt exporters to start selling the greenback, limiting the currency’s slump.”
The Taiwan dollar slipped 0.2 percent to NT$30.463 against its U.S. counterpart as of 9:44 a.m. local time, according to Taipei Forex Inc. It touched NT$30.500, the weakest level since Oct. 12.
Asian stocks slumped today after bidding in a German bund auction yesterday fell short of the offer amount. HTC Corp., the largest seller of smartphones in the U.S., cut its revenue guidance for the fourth quarter yesterday, citing stronger competition and a global economic downturn.
The yield on the 1.25 percent government bonds due September 2021, the most-traded government securities, fell one basis point, or 0.01 percentage point, to 1.308 percent, prices from Gretai Securities Market show. That’s the lowest level since Oct. 18.
The overnight money-market rate, which measures interbank funding availability, was little changed at 0.392 percent, according to a weighted average compiled by the Taiwan Interbank Money Center.
--Editors: Sandy Hendry, Ven Ram
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