Taiwan’s dollar weakened for a second day as investors sought the safety of the greenback on speculation Greece may default on its debt. The Bloomberg-JPMorgan Asia Dollar Index, which tracks the region’s 10-most-traded currencies, dropped after Greece said it had no plans for a restructuring even as the cost of insuring its debt climbed to a record on April 15. China, the island’s biggest trading partner, announced over the weekend it will raise banks’ reserve-requirement ratios from April 21, and People’s Bank of China Governor Zhou Xiaochuan said monetary tightening will continue for “some time.” “The Europe debt crisis weighed on the Taiwan dollar,” said Henry Lin, a Taipei-based foreign-exchange trader at Taiwan Shin Kong Commercial Bank. “The U.S. dollar will probably stay strong for the rest of the week.” Taiwan’s dollar declined 0.1 percent to NT$29.089 against its U.S. counterpart as of the 4 p.m. local time close, according to Taipei Forex Inc. Government bonds were little changed. The yield on the 1 percent bond due January 2016, the most-active government security, was at 1.072 percent, compared with 1.076 percent on April 15, according to Gretai Securities Market, the island’s biggest exchange for bonds. To contact the reporter on this story: Andrea Wong in Taipei at awong268@bloomberg.net To contact the editor responsible for this story: Sandy Hendry at shendry@bloomberg.net

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