BLBG:Taiwan Dollar Falls for Fifth Day, Bonds Rise on Slowdown Signs
Taiwan’s dollar fell for a fifth day, the longest losing streak in two months, and government bonds rallied after factory production slowed and global funds cut holdings of local stocks.
The local dollar fell to the lowest in almost six weeks after foreign investors sold $103 million more Taiwanese shares than they bought today, according to exchange data. Industrial production rose 1.4 percent in October from a year earlier, the slowest growth in more than two years, a government report showed yesterday.
“Many signs and economic indicators are pointing to slowing domestic growth,” said Tarsicio Tong, a trader at Union Bank of Taiwan in Taipei. “Further weakening of the Taiwan dollar in the next few days may prompt exporters to start selling the greenback, limiting the currency’s slump.”
The Taiwan dollar slipped 0.2 percent to NT$30.442 against its U.S. counterpart, according to Taipei Forex Inc. It touched NT$30.500, the weakest level since Oct. 12.
HTC Corp., the largest seller of smartphones in the U.S., cut its revenue guidance for the fourth quarter yesterday, citing stronger competition and a global economic downturn.
The yield on the 1.25 percent government bonds due September 2021, the most-traded government securities, fell one basis point, or 0.01 percentage point, to 1.309 percent, prices from Gretai Securities Market show. That’s the lowest level since Oct. 18.
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
