| Taiwan Central Bank Said to Urge Cuts in Dollar Bets |
| News - Eurasia |
| Written by Yu-huay Sun, Bloomberg |
| Friday, 25 September 2009 13:34 |
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Sept. 24 (Bloomberg) -- Taiwan’s central bank urged lenders to reduce their bets against the U.S. dollar after the island’s currency reached a three-month high, according to traders at foreign banks.
An official at the Central Bank of the Republic of China (Taiwan) called and advised against taking too many U.S. dollar short positions, said the two traders, who asked not to be identified to safeguard their relationships with the monetary authority. Surging overseas investment in local equities has helped drive Taiwan’s currency 4.3 percent higher versus the greenback in the past six months, eroding the competitiveness of manufacturers. The island’s export orders, an indicator of actual shipments over the next one to three months, fell for an 11th month in August, dropping 12 percent from a year earlier, the Ministry of Economic Affairs said late yesterday. Economists surveyed by Bloomberg News forecast a 7.25 percent decline. |