Taiwan's dollar may gain 4.2 percent by the middle of next year as the central bank will probably allow the currency to strengthen to curb inflation, UBS AG said.
The New Taiwan dollar advanced 3.3 percent in the past six months as policy makers increased interest rates for 13 straight quarters to temper the inflation rate, which rose to a 13-year high last month. A stronger currency helps to slow gains in consumer prices by making imports cheaper.
"I don't think hiking of interest rates will be enough and therefore it will become necessary for them to complement the hiking by allowing the currency to appreciate," said Nizam Idris, a currency strategist at UBS in Singapore.
"Inflation pressure is coming both from strong domestic demand and imported inflation from higher oil prices and foods," he said.
The NT dollar was little changed against the US currency. It traded at NT$32.348 from NT$32.350 yesterday morning, according to Taipei Forex Inc.
The currency may reach NT$31 by the end of next June, Nizam said.
The NT dollar may also draw support from expectations overseas fund managers will place more money into local shares and other assets, UBS said.
"Stock inflows have been quite strong," Nizam said. "It's likely to be sustained. Other potential inflows into Taiwan will come from China."
Fund managers outside Taiwan bought US$1.8 billion more of Taiwan's equities than they sold this year through yesterday, according to data from the stock exchange.
Quanta Computer Inc (廣達) chairman Barry Lam (林百里) is expected to share his views about the artificial intelligence (AI) industry’s prospects during his speech at the company’s 37th anniversary ceremony, as AI servers have become a new growth engine for the equipment manufacturing service provider. Lam’s speech is much anticipated, as Quanta has risen as one of the world’s major AI server suppliers. The company reported a 30 percent year-on-year growth in consolidated revenue to NT$1.41 trillion (US$43.35 billion) last year, thanks to fast-growing demand for servers, especially those with AI capabilities. The company told investors in November last year that
Intel Corp has named Tasha Chuang (莊蓓瑜) to lead Intel Taiwan in a bid to reinforce relations between the company and its Taiwanese partners. The appointment of Chuang as general manager for Intel Taiwan takes effect on Thursday, the firm said in a statement yesterday. Chuang is to lead her team in Taiwan to pursue product development and sales growth in an effort to reinforce the company’s ties with its partners and clients, Intel said. Chuang was previously in charge of managing Intel’s ties with leading Taiwanese PC brand Asustek Computer Inc (華碩), which included helping Asustek strengthen its global businesses, the company
Taiwanese suppliers to Taiwan Semiconductor Manufacturing Co. (TSMC, 台積電) are expected to follow the contract chipmaker’s step to invest in the US, but their relocation may be seven to eight years away, Minister of Economic Affairs J.W. Kuo (郭智輝) said yesterday. When asked by opposition Chinese Nationalist Party (KMT) Legislator Niu Hsu-ting (牛煦庭) in the legislature about growing concerns that TSMC’s huge investments in the US will prompt its suppliers to follow suit, Kuo said based on the chipmaker’s current limited production volume, it is unlikely to lead its supply chain to go there for now. “Unless TSMC completes its planned six
TikTok abounds with viral videos accusing prestigious brands of secretly manufacturing luxury goods in China so they can be sold at cut prices. However, while these “revelations” are spurious, behind them lurks a well-oiled machine for selling counterfeit goods that is making the most of the confusion surrounding trade tariffs. Chinese content creators who portray themselves as workers or subcontractors in the luxury goods business claim that Beijing has lifted confidentiality clauses on local subcontractors as a way to respond to the huge hike in customs duties imposed on China by US President Donald Trump. They say this Chinese decision, of which Agence
RSS