Taiwan dollar gains 0.3% on promise of closer China ties


Bloomberg

TAIPEI, Taiwan — The Taiwan dollar rose to a two-week high on optimism the economy will improve as the new government forges closer ties with China. The government’s top economic planner Chen Tain-jy, who took office Tuesday, said yesterday the administration had increased its target for economic growth this year to 5 percent from 4.8 percent in December, citing the prospect of improving relations with China. “Everybody is bullish about the Taiwan dollar’s outlook,” said Henry Lin, a currency trader at Shin Kong Commercial Bank in Taipei. “People are relatively upbeat about economic conditions.”

The Taiwan dollar rose 0.3 percent to NT$30.499 against its U.S. counterpart as of the 4 p.m. local close yesterday, according to Taipei Forex Inc. It earlier reached NT$30.431, the highest level since May 5.

Incoming President Ma Ying-jeou, who was sworn in yesterday, has pledged to boost Taiwan’s economic growth to 6 percent by improving ties with the Mainland and increasing spending on infrastructure.