Jan. 4 (Bloomberg) -- Taiwan’s dollar traded near the strongest level in more than a week after economic data from the U.S. and Germany boosted optimism that global growth is intact. Bonds were steady.
The MSCI Asia-Pacific Index of stocks rose 1.1 percent after reports yesterday showed U.S. factories expanded in December at the fastest pace in six months and Germany’s unemployment fell more than forecast. The central bank will maintain order in the currency market if irregular volatilities occur, the monetary authority said in a statement on Dec. 29,
“We’ve been getting positive U.S. economic data recently, and that has led to some weakness in the greenback,” said Tarsicio Tong, a currency trader at Union Bank of Taiwan in Taipei. “The central bank has indicated the Taiwan dollar will stay stable in the coming months.”
The island’s dollar was steady at NT$30.290 against its U.S. counterpart and touched NT$30.180 earlier, matching the Jan. 2 level which was the strongest since Dec. 22, according to Taipei Forex Inc.
The yield on the 1 percent bonds due January 2017 was little changed at 0.993 percent, prices from Gretai Securities Market show.
Inflation accelerated to 1.1 percent in December, from 1 percent in November, according to the median estimate of economists surveyed by Bloomberg before data due tomorrow.
The government sold NT$40 billion ($1.3 billion) of five- year notes at 1 percent yesterday, matching the median estimate in a Bloomberg survey. That compared with a rate of 1.08 percent at an October sale of similar-maturity securities. The offer drew a bid-to-cover ratio of 2.13 times, the highest since 2010.
The overnight money-market rate, which measures interbank funding availability, was steady at 0.4 percent, according to a weighted average compiled by the Taiwan Interbank Money Center.
--Editors: Andrew Janes, Anil Varma
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