BLBG:Taiwan Dollar Drops Most in Almost Four Weeks on Tax Concerns
Taiwan’s dollar fell the most in almost four weeks and government bonds rose after the stock exchange signaled plans to impose a capital-gains tax on share transactions.
The currency weakened 0.2 percent to NT$29.53 per dollar at 9:16 a.m. Taipei time as the TWSE index slumped 2.3 percent. The yield on the benchmark 10-year government bond fell one basis point to 1.27 percent.
“The Taiwan dollar is falling because the stock market is lower,” said Tarsico Tong, a currency trader at Union Bank of Taiwan (2838) in Taipei. “The government is talking about imposing the capital-gains tax.”
Losses in the Taiwan dollar may halt at NT$29.60 as exporters will probably sell U.S. dollars at this level, Tong said. At NT$29.45, importers would buy the greenback, he said.
To contact Bloomberg News staff for this story: Lilian Karunungan in Singapore at lkarunungan@bloomberg.net
To contact the editor responsible for this story: Sandy Hendry at shendry@bloomberg.net
