Taiwan dollar near 2-wk low on economic worries
Reuters - 2 hours 32 minutes ago
TAIPEI, Dec 2 - The Taiwan dollar weakened for a second straight session to a nearly two-week low on Tuesday as worries over a deepening global economic slump dampened investor confidence, pushing down most Asian currencies and stocks.
The Taiwan dollar <TWD=TP> had fallen to T$33.516 to the U.S. dollar in early trade, its lowest intraday level since Nov. 21 and compared to the previous close of T$33.350, but pared earlier losses to T$33.487 at 0216 GMT.
Volume on the Taipei Forex Inc. exchange was moderate at $210 million after an hour and 15 minutes of trade, higher than the $79 million a day earlier.
"You see all the factors aligned to one side today," said a dealer in Taipei.
"U.S. stocks and Taiwan stocks are falling, the renminbi is falling and the Korean won is falling. There's nothing to push up the Taiwan dollar today."
Taiwan stocks fell 3.8 percent on Tuesday, pulling back from a two-week closing high, following large declines on Wall Street and further dragged down by a lower sales forecast from tech bellwether TSMC <2330.TW>.
Dealers said they expected the Taiwan dollar to weaken further to about T$33.80 before the end of the year.
They were also keeping a wary eye on key economic data due this week, including November's forex reserves and inflation data on Friday.
The trend on the non-deliverable forwards market was similar to the spot market as investors actively bought U.S. dollars.
Six-month NDFs were quoted at -0.070/-0.020 from the previous session's -0.100/-0.050, meaning investors expected the Taiwan dollar to firm less than previously expected.
On the smaller Cosmos exchange <COSMOS1>, the Taiwan dollar fell to T$33.475 to the U.S. dollar from the previous close of T$33.349.
(Reporting by Kelvin Soh and Lin Miao-jung; editing by Ken Wills)
Recommend this article
Average (0 votes)
Sign in to recommend this article »
Most Recommended Stories »
Related Articles: Business
Australia slashes interest rate to avert recessionAP - 20 minutes ago
India Hot Stocks: M&M, Tata Motors down on Nov sales dropReuters - 30 minutes ago
India's Tata Motors to close Pune plant for 3 daysReuters - 32 minutes ago
Indian shares open 3.44 pct down on global fallsReuters - 34 minutes ago
NZ dollar lower on stocks plunge; bonds firmReuters - 37 minutes ago
Most Popular – Business
Wall Street plunges as recession becomes reality
World AIDS Day highlights big challenges 20 years on
Saudi king says 75 dollar oil price 'fair'
Love handles increase death risk: study
World's oldest person dies at 115 years
View Complete List »