msn.com 18 Sep, 2020 10:15 am

Taiwan Dollar Rises Most in 6 Months as Central Bank Eases Grip

Taiwan’s dollar strengthened the most since March on Friday, a sign that the central bank is loosening its grip on the world’s most stable currency.

Bloomberg p (Bloomberg) -- Taiwan’s dollar strengthened the most since March on Friday, a sign that the central bank is loosening its grip on the world’s most stable currency.Taiwan’s central bank has acted repeatedly to limit strength in its currency, a move that’s become particularly visible to traders since July and has helped boost local exports.Taiwan's currency is strengthening after being held around same level p “The central bank will probably be more aggressive if there is excessive volatility and exuberance, but because the Taiwan dollar’s gain is in line with other Asian exchange rates, we can rule out the excessiveness,” said Christopher Wong, a senior foreign-exchange strategist at Malayan Banking Bhd.Read more on Taiwan’s dollar Central bank Governor Yang Chin-long, who refers to currency intervention as “smoothing,” said Thursday that the local dollar was not “strong” when measured against trade-weighted valuation metrics.

The comments suggested to analysts that the central bank is more comfortable with appreciation.Because Yang doesn’t see the currency as overvalued on trade-weighted terms, the central bank “will be open to allowing it to appreciate, but of course they will want to influence the pace,” he said.

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