Mysterious Late Drops Stoke Taiwan Dollar Intervention Talk
- Local currency seen paring gains shortly before end of trading
- Central bank denies interference, says moves market-based
A Bank SinoPac employee counts New Taiwan Dollar banknotes in a bank branch in Taipei, Taiwan, on Wednesday, July 17, 2013.
Photographer: Ashley Pon/Bloomberg
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Fewer than two months after Taiwan was taken off the U.S.’s currency watch list, some observers are suggesting that the island’s central bank is getting more active in the foreign-exchange market.
Pronounced declines in the Taiwan dollar near the close of trading over the last two weeks have spurred speculation that the monetary authority is weakening the exchange rate to help exporters. The central bank denies intervention, with Harry Yen, director-general of its foreign-exchange department, saying the moves are determined by market forces alone.