Updated Friday, April 30, 2010 11:41 am TWN, The China Post
Influx of speculative hot money slowing down: CBC
The influx of speculative hot money has slowed down and over NT$300 billion in funds remitted into Taiwan is currently deposited at local banks, after the Central Bank of China (Taiwan) talked with several institutional investors, CBC Deputy Governor Chou A-ting said yesterday. Chou made the remarks at a legislative committee meeting to deny speculation that it had stepped in to weaken the local currency on Wednesday, when the New Taiwan dollar depreciated by NT$0.127 against the U.S. dollar.
Chou said that the value of the New Taiwan dollar is decided by market forces and the central bank did not interfere to make it weaker.
As to the question of whether Taiwanese companies have also been lining up to speculate on a rising local currency, he promised that the central bank will closely monitor the situation.
In related news, the NT dollar yesterday advanced NT$0.089 to close at NT$31.450 against the greenback, due mainly to local exporters unloading their U.S. dollar holdings at month-end, according to market sources.
The local dollar surged NT$0.139 soon after the Taipei foreign exchange market opened, as local exporters rushed to dump their U.S. dollar holdings, a routine practice seen during the closing sessions of every month.
But foreign banks in Taiwan stepped in to purchase U.S. dollars to replenish their U.S. dollar positions in the afternoon session of the local forex market, bringing the appreciation size down to only NT$0.089.
Total market turnovers in Taiwan amounted to a high of US$1.473 billion.
Influx of speculative hot money slowing down: CBC
The influx of speculative hot money has slowed down and over NT$300 billion in funds remitted into Taiwan is currently deposited at local banks, after the Central Bank of China (Taiwan) talked with several institutional investors, CBC Deputy Governor Chou A-ting said yesterday. Chou made the remarks at a legislative committee meeting to deny speculation that it had stepped in to weaken the local currency on Wednesday, when the New Taiwan dollar depreciated by NT$0.127 against the U.S. dollar.
Chou said that the value of the New Taiwan dollar is decided by market forces and the central bank did not interfere to make it weaker.
As to the question of whether Taiwanese companies have also been lining up to speculate on a rising local currency, he promised that the central bank will closely monitor the situation.
In related news, the NT dollar yesterday advanced NT$0.089 to close at NT$31.450 against the greenback, due mainly to local exporters unloading their U.S. dollar holdings at month-end, according to market sources.
The local dollar surged NT$0.139 soon after the Taipei foreign exchange market opened, as local exporters rushed to dump their U.S. dollar holdings, a routine practice seen during the closing sessions of every month.
But foreign banks in Taiwan stepped in to purchase U.S. dollars to replenish their U.S. dollar positions in the afternoon session of the local forex market, bringing the appreciation size down to only NT$0.089.
Total market turnovers in Taiwan amounted to a high of US$1.473 billion.