Upward drift of NT dollar welcomed by the CBC

Nick Land, The China Post

The NT dollar climbed further yesterday, closing at NT$34.599 compared to Friday’s NT$34.625. Volume fell drastically, with turnover down to US$314 million from Friday’s US$642.0 million. Greenback weakness against the yen combined with local stock-market gains to push the NT dollar upwards in light trade. Dealers said that the CBC welcomed the appreciation, in an apparent reversal of its recent stance.

Last week the CBC emphatically denied accusations made on a financial Web site that it had been pursuing a weak NT dollar stance implicated in the deterioration of Taiwan’s credit rating. The central bank is also currently deeply involved in important reforms of the island’s grassroots credit system designed to improve general financial confidence.

Dealers attributed today’s rise in the local unit to modest currency deposit conversions and NDF sales, marginally reinforced by technical trades.