Bloomberg News

Taiwan Dollar Weakens After Export Orders Decline; Bonds Advance

February 21, 2012

Feb. 21 (Bloomberg) -- Taiwan’s dollar fell for the first time in three days after the island’s export orders dropped by the most in more than two years. Government bonds rose.

The Taiex index of shares declined 0.4 percent after official data yesterday showed export orders, an indication of shipments in the next one to three months, fell 8.6 percent in January from a year earlier. Euro-area finance ministers awarded 130 billion euros ($172 billion) in aid to Greece today after talks in Brussels. Foreign funds bought $38 million more local stocks than they sold yesterday, compared with net inflows of $266 million on Feb. 17, according to data compiled by Bloomberg.

“Inflows into Taiwan’s capital markets are slowing so the currency remains in its range-trading mode around the current level,” said Tarsicio Tong, a currency trader at Union Bank of Taiwan in Taipei. “Investors are a bit cautious with limited positive news that could boost the stock market.”

The Taiwan dollar slipped 0.1 percent to close at NT$29.568 against its U.S. counterpart in Taipei, according to Taipei Forex Inc.

The yield on the government’s 1.25 percent bonds due March 2022 rose one basis point, or 0.01 percentage point, to 1.282 percent, prices from Gretai Securities Market show. Benchmark 10-year rates gained one basis point to 1.281 percent, after touching 1.26 percent on Feb. 16, the lowest closing level since Dec. 19.

The overnight money-market rate, which measures interbank funding availability, was little changed at 0.397 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: Fion Li in Hong Kong at fli59@bloomberg.net

To contact the editor responsible for this story: James Regan in Hong Kong at jregan19@bloomberg.net


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