Oct. 21 (Bloomberg) -- Taiwan’s dollar advanced for the first time in five days after the value of export orders reached a record high. Bonds rose for a second straight day as the government unveiled a plan to buy back debt. Overseas orders, an indication of shipments in the next one to three months, increased 16.7 percent in September to $35.98 billion after climbing 23.3 percent the previous month, the Ministry of Economic Affairs said yesterday. “Taiwan’s trade is doing well,” said Lucas Lee, a Taipei- based economist at Mega Securities Co. “The market is looking for investments where returns are higher.” The local dollar closed 0.2 percent higher at NT$30.869 against its U.S. counterpart, according to Taipei Forex Inc. The currency reached NT$30.54 on Oct. 14, its strongest level since July 2008. Overseas investors held NT$120 billion ($3.89 billion) in Taiwan-dollar deposit accounts and NT$250 billion in government bonds, central bank Governor Perng Fai-nan said yesterday after a lawmaker asked how much speculative money from abroad there is on the island. The tactic of “moral suasion” has helped to cut “hot money” flows into Taiwan, Perng said. The Ministry of Finance said it planned to buy back bonds with a total face value of NT$40 billion in a tender on Nov. 4. The yield on the 1.125 percent bond maturing in September 2020 fell 0.7 basis point to 1.223 percent, according to Gretai Securities Market, Taiwan’s biggest exchange for bonds. Its price climbed 0.0660, or NT$66.0 per NT$100,000 face amount, to 99.0921. --Editors: Ven Ram, Dirk Beveridge To contact the reporter on the story: Yu-huay Sun in Taipei ysun7@bloomberg.net To contact the editor responsible for this story: Sandy Hendry at shendry@bloomberg.net.

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