Taiwan dollar at 3-year high

Taiwan's dollar was set for the best month in almost a decade as growth attracts overseas investors to the island's assets.
The local currency rose to the highest level in almost three years as the U.S. dollar slumped to a record low against the euro. A report on Thursday showed U.S. growth slowed in the fourth quarter, lagging behind forecasts. Taiwan's economy expanded 6.9 percent in the quarter fueled by exports to China.
"Pessimism in the U.S. triggered another wave of Taiwan dollar appreciation," said Yang Kung-yi, a currency trader at Shanghai Commercial & Savings Bank in Taipei. "Companies' Taiwan dollar purchases haven't ended yet."
The local dollar climbed 4.5 percent this month, the most since October 1998, to NT$30.785 as of 9:48 a.m., according to Taipei Forex Inc. It touched NT$30.735 yesterday, the strongest since March 2005.
Taiwan's dollar, the second-best performer among Asia's 10 most-active currencies this month, may extend its advance to more than a seven-year high of NT$30.26 against the U.S. currency, Kevin Edgeley, an analyst at Goldman Sachs Group Inc., said in a report yesterday.
Taiwan's 10-year government bonds gained, ending three days of declines, on speculation stock losses spurred demand for fixed-income securities.
The yield on the benchmark 2 3/8 percent bond due September 2017 declined 1.8 basis points to 2.418 percent, according to Gretai Securities Market.

Updated : 2021-01-28 16:19 GMT+08:00