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Feb. 2 (Bloomberg) -- Taiwan’s dollar advanced to a four- month high after U.S. economic data eased concern the world’s largest economy is slowing, improving the outlook for the island’s exports. Government bonds were little changed.
Global funds bought $1 billion more Taiwanese stocks than they sold this week, taking net purchases for the year to $2.1 billion, according to exchange data. U.S. manufacturing grew at the fastest pace since June, according to a report yesterday, while government data showed construction spending increased more than forecast.
“Risk sentiment is quite strong today as we have some positive news from the U.S.,” said Eric Hsing, a fixed-income trader at First Securities Inc. in Taipei. “That also sapped demand for government bonds.”
The Taiwan dollar strengthened 0.5 percent to NT$29.550 against its U.S. counterpart, according to Taipei Forex Inc. The currency touched NT$29.450 earlier, the strongest level since Sept. 13. The yield on the government’s 1 percent notes due January 2017 was little changed at 0.931 percent, prices from Gretai Securities Market show.
The overnight money-market rate, which measures interbank funding availability, fell one basis point, or 0.01 percentage point, to 0.393 percent, according to a weighted average compiled by the Taiwan Interbank Money Center.
--Editors: Andrew Janes, Simon Harvey
To contact the reporter on this story: Andrea Wong in Taipei at firstname.lastname@example.org
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