NT dollar extends gains as central bank steps backBloombergThe New Taiwan dollar yesterday extended its winning streak, a day after it closed at the strongest level since 2011 amid speculation that the central bank would continue to loosen its grip on the rallying currency. While for months the central bank stepped in daily to limit appreciation, its relatively hands-off approach recently is a sign that officials might allow further strengthening. The central bank allowing appreciation “is justified based on fundamentals and the currency is not overvalued,” Australia & New Zealand Banking Group Ltd head of Asia research Khoon Goh (吳昆) said. Central bank Governor Yang Chin-long (楊金龍) said on Sept. 17 that the NT dollar was “not strong” versus trade-weighted valuation metrics. Taiwan Association of Machinery Industry (台灣機械公會) chairman Alex Ko (柯拔希) yesterday urged the central bank to take action to keep the NT dollar weak, warning that Taiwanese machinery exporters would lose their global competitiveness if it did not act.

Source: Taipei Times October 06, 2020 15:56 UTC