The New Taiwan dollar touched its strongest level since June after exports increased for a fourth month and global funds accelerated purchases of local equities.
Overseas shipments, which account for about three-quarters of the nation’s GDP, rose 3.6 percent last month from a year earlier, while the trade surplus increased to US$4.6 billion from US$3.2 billion the month before, official data showed on Monday. Foreign investors bought US$2.4 billion more Taiwanese shares than they sold in nine trading days through yesterday, taking net purchases this year to US$3.3 billion, exchange data showed.
The NT dollar strengthened 0.2 percent to NT$29.76 against the US dollar, Taipei Forex Inc prices show. It touched NT$29.622 earlier, the strongest level since June 7. The NT dollar rallied 0.7 percent in the past month, the most after the won among Asia’s 11 most-traded currencies.
“Now that major economies like Europe, the US and China are recovering, funds flow toward places that benefit from exports, such as Taiwan,” Taipei-based KGI Securities economist Andrew Tsai said. “You can see the Korean won and the Taiwan dollar have been appreciating since the end of August due to equity allocation.”
The NT dollar was trading 0.5 percent stronger nine minutes before the 4pm close yesterday. The central bank has sold the currency in the run-up to the finish on most days since March last year, according to traders who asked not to be identified.
One-month non-deliverable forwards weakened 0.1 percent to NT$29.627 per US dollar, according to data compiled by Bloomberg.