Despite strong market expectation of gradual gains in the New Taiwan dollar, the currency yesterday declined by NT$0.079 to close at NT$33.179 against the US dollar on the Taipei foreign exchange market.
But market watchers believe that there is still room for the NT dollar to gain.
"It's likely that the NT dollar may continue to climb and break through the NT$33 level by the end of this month," said Yang Kung-yi (
Local exporters yesterday rushed to dump the US dollar while foreign investors stepped in to overbuy the local currency by NT$8.7 billion, triggering a roller-coaster fluctuation in the foreign exchange market, Yang said.
But another currency trader, who refused to be identified, said the NT dollar may remain stable before the presidential election as the Japanese yen also stabilizes.
The inflow of hot money, as a result of overseas investors' optimism in Asian stock performance, will build up pressures for the NT dollar to strengthen, Yang said.
The NT dollar yesterday pared a decline of as much as 0.7 percent after central bank Governor Perng Fai-nan (彭淮南) told lawmakers that stability in the currency will be maintained, while suggesting exporters buy forward contracts on the NT dollar to hedge future exchange risk.
Speaking at the legislature's Finance Committee, Perng said that the NT dollar's recent appreciation has outdone other Asian currencies including the yen and Korean won.
The NT dollar has gained 2.99 percent from a year earlier to close at NT$33.978 against the US dollar at the end of last year, Perng said. By last Friday, the NT dollar had gained another 2.56 percent to close at NT$33.13, he noted.
People First Party Legislator Thomas Lee (
Perng agreed, saying that the bank's stance is to disallow any in-and-out flow of short-term capital, or so-called hot money, to disturb the foreign-exchange market's stability. He also vowed to adhere to market principles.
"Should any irregular factors disturb the market, the central bank is ready to step into the market to maintain the dynamic stability of the exchange rate," Perng said.
The bank recently detected and corrected a high-tech firm, which used past invoices to purchase foreign-exchange forwards, he said.
According to Perng, as of Tuesday, the inflow of foreign capital has reached US$71 billion, amounting to 14.62 percent of the stock market.
Perng added that he believes foreign investors are more interested in speculating on the up to 7 percent daily fluctuation on the stock market than the foreign-exchange market, which he said is relatively stable.
LONG FLIGHT: The jets would be flown by US pilots, with Taiwanese copilots in the two-seat F-16D variant to help familiarize them with the aircraft, the source said The US is expected to fly 10 Lockheed Martin F-16C/D Block 70/72 jets to Taiwan over the coming months to fulfill a long-awaited order of 66 aircraft, a defense official said yesterday. Word that the first batch of the jets would be delivered soon was welcome news to Taiwan, which has become concerned about delays in the delivery of US arms amid rising military tensions with China. Speaking on condition of anonymity, the official said the initial tranche of the nation’s F-16s are rolling off assembly lines in the US and would be flown under their own power to Taiwan by way
FREEDOM OF NAVIGATION: The UK would continue to reinforce ties with Taiwan ‘in a wide range of areas’ as a part of a ‘strong unofficial relationship,’ a paper said The UK plans to conduct more freedom of navigation operations in the Taiwan Strait and the South China Sea, British Secretary of State for Foreign, Commonwealth and Development Affairs David Lammy told the British House of Commons on Tuesday. British Member of Parliament Desmond Swayne said that the Royal Navy’s HMS Spey had passed through the Taiwan Strait “in pursuit of vital international freedom of navigation in the South China Sea.” Swayne asked Lammy whether he agreed that it was “proper and lawful” to do so, and if the UK would continue to carry out similar operations. Lammy replied “yes” to both questions. The
‘OF COURSE A COUNTRY’: The president outlined that Taiwan has all the necessary features of a nation, including citizens, land, government and sovereignty President William Lai (賴清德) discussed the meaning of “nation” during a speech in New Taipei City last night, emphasizing that Taiwan is a country as he condemned China’s misinterpretation of UN Resolution 2758. The speech was the first in a series of 10 that Lai is scheduled to give across Taiwan. It is the responsibility of Taiwanese citizens to stand united to defend their national sovereignty, democracy, liberty, way of life and the future of the next generation, Lai said. This is the most important legacy the people of this era could pass on to future generations, he said. Lai went on to discuss
MISSION: The Indo-Pacific region is ‘the priority theater,’ where the task of deterrence extends across the entire region, including Taiwan, the US Pacific Fleet commander said The US Navy’s “mission of deterrence” in the Indo-Pacific theater applies to Taiwan, Pacific Fleet Commander Admiral Stephen Koehler told the South China Sea Conference on Tuesday. The conference, organized by the Center for Strategic and International Studies (CSIS), is an international platform for senior officials and experts from countries with security interests in the region. “The Pacific Fleet’s mission is to deter aggression across the Western Pacific, together with our allies and partners, and to prevail in combat if necessary, Koehler said in the event’s keynote speech. “That mission of deterrence applies regionwide — including the South China Sea and Taiwan,” he
RSS