Tue, May 20, 2008 - Page 12 News List

Fund inflows help NT dollar appreciate

BLOOMBERG

The New Taiwan dollar advanced against the US currency for a third day on overseas fund inflows to Taiwan’s equities. Local government bonds gained.

The NT dollar rose to the highest in eight days as the TAIEX climbed 1.1 percent. Foreign investors bought NT$66.9 billion (US$2.2 billion) more Taiwanese stocks than they sold last week, compared with net sales of NT$37.7 billion in the previous week, the Taiwan Stock Exchange Web site said.

“I’m upbeat about the Taiwan dollar,” said Cindy Wang, a currency trader at Bank SinoPac (永豐銀行) in Taipei. “Foreign investors are sending in funds.”

The NT dollar rose 0.4 percent to NT$30.548 at the 4pm close, Taipei Forex Inc said.

Ten-year government bonds gained on speculation increased costs to borrow the debt prompted traders to buy back holdings.

Benchmark 10-year notes advanced for a second day after the cost for loaning the bonds for one day surged to 49 percent a year on Friday, said Jim Chen of International Bills Finance Corp (國際票券).

That was an increase from the less than 10 percent a week earlier.

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