Taiwan’s dollar weakened, snapping a three-day advance, as concern the global economic recovery is losing momentum saw investors favor the safest assets.
Global funds sold $97 million more Taiwanese stocks than they bought today, bringing net sales for the month to more than $1.1 billion, according to exchange data. South Korea’s central bank lowered its 2012 economic growth forecast to 3.5 percent today from a December estimate of 3.7 percent. Taiwan’s benchmark five-year yields reached 1.044 percent on April 13, the highest level since November.
“Some investors are still worried about the economic outlook,” said James Wang, a debt trader at Yuanta Securities Co. in Taipei. “Banks have been looking for chances to buy bonds. There’s some bargain hunting after yields reached a relatively high level last week.”
Taiwan’s dollar weakened 0.1 percent to NT$29.564 against its U.S. counterpart, and touched a one-week low of NT$29.600, according to Taipei Forex Inc. One-month implied volatility, a measure of exchange-rate swings traders use to price options, was steady at 3.90 percent.
The yield on the government’s 1 percent securities due January 2017 fell to 1.042 percent from 1.044 percent on April 13, according to Gretai Securities Market.
The overnight money-market rate was little changed at 0.481 percent, according to a weighted average compiled by the Taiwan Interbank Money Center.
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