Taiwan Dollar's Asia-Beating Rally May Be Coming to an End
- Traders expect local currency to weaken 1.8% from June 30
- Stock outflows, central bank’s stance cited as main factors
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The Taiwan dollar’s Asia-topping gains are coming to an end, local traders say.
The currency, which jumped 6 percent in the first half amid strong equity inflows, will end the year at 31 to the U.S. dollar, according to the median estimate in a Bloomberg survey of foreign-exchange traders. This implies a 1.8 percent drop from the close on June 30. Overseas investors are likely to post net fund outflows over the next 12 months, while the central bank will show a bias for a steady to weaker Taiwan dollar, a majority of the 17 respondents said.