Feb. 13 (Bloomberg) -- Taiwan’s dollar rose toward a five- month high on optimism the island’s economic growth will prompt global funds to add to holdings of local assets. Government bonds were steady.
Overseas investors bought $2.7 billion more stocks in Taiwan than they sold this year, contributing to a 2.6 percent advance in the currency, according to data compiled by Bloomberg. The government predicts gross domestic product will climb 3.9 percent this year following estimated growth of 4 percent in 2011.
“Funds continue to come into Taiwan as they want to profit from a stronger currency and the stock performance,” said Henry Lin, a Taipei-based foreign-exchange trader at Taiwan Shin Kong Commercial Bank. “They think Asia still has room to grow, as compared to Europe and the U.S.”
The Taiwan dollar climbed 0.1 percent to NT$29.54 against its U.S. counterpart, according to Taipei Forex Inc. It touched NT$29.37 on Feb. 10, the strongest level since Sept. 13. Importers’ demand for the greenback checked the Taiwanese currency’s advance, according to Lin.
The yield on the government’s 1 percent notes due January 2017, the most-traded government securities, was little changed at 0.95 percent, prices from Gretai Securities Market show.
The overnight money-market rate, which measures interbank funding availability, was steady at 0.397 percent, according to a weighted average compiled by the Taiwan Interbank Money Center.
--Editors: Ven Ram, James Regan
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