Taiwan Dollar Bolsters 2017 Gain With Biggest Jump in Two Months
(Bloomberg) -- The Taiwan dollar’s best year in three decades keeps getting better.
The currency surged as much as 0.47 percent to 29.80 versus the dollar on Thursday, its biggest intraday gain since October and strongest level since January 2014. Even with this year’s climb topping 8 percent, the most since 1987, central bank deputy governor Yang Chin-long said this week that the appreciation isn’t big compared to other exchange rates.
“Sentiment has been boosted on the local currency after the deputy CBC governor said Wednesday that the Taiwan dollar’s gain this year is not too much," said Christopher Wong, senior currency strategist at Malayan Banking Bhd in Singapore. “The deputy governor’s words eased concern of potential intervention to contain further Taiwan dollar strength."
The local currency has also been boosted by equity inflows of $5.7 billion though Wednesday, the most among Asian countries tracked by Bloomberg after South Korea and India. Asian currencies have gained this year, led by the won’s 13 percent advance, as the greenback retreated.
“With Taiwan companies becoming more and more important in the global electronics value chain, fund inflows lift the currency," said Aidan Wang, an economist at Cathay Securities Investment Trust Co. “Currencies of Taiwan’s export-competing countries are also appreciating, so the local dollar’s strength won’t necessarily hurt Taiwan’s competitiveness."
The Taiwan dollar rose 0.37 percent to 29.83 as of 1:23 p.m. local time.
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