The New Taiwan dollar had its strongest close in almost 14 months yesterday at the Taipei foreign exchange, reflecting gains in the yen, rising NT$0.098, or 0.3 percent, to close at NT$33.282.
Turnover totalled US$1.32 billion, the highest in two weeks and compared with the previous day's US$757 million.
"There'll be continued appreciation for the Taiwan dollar, given what's happening to the yen," said Craig Chan, senior strategist at Forecast Ltd in Singapore.
Gains were limited on speculation Taiwan's central bank sold its domestic currency to prevent a rally from slowing exports and an economic recovery, traders said.
The central bank couldn't be reached for comment.
A strengthening currency may halt gains in exports, which rose faster than expected in June, climbing 9 percent from a year ago.
Taiwan's foreign-currency reserves rose for a 12th month in June, climbing 6 percent from May to US$148.2 billion, the central bank said Friday.
"The central bank has been the main buyer of US dollars and will continue to be," Chan said.
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