NT$ falls to 1-month low on outflow
Taiwan's dollar yesterday weakened to a one-month low on concern overseas investors will cut holdings of stocks and traders will borrow the currency to invest in higher-yielding assets.
Fund managers outside of Taiwan sold more equities than they bought for nine straight days, the longest period since May 26, according to stock exchange data. The local dollar also extended last week's 0.3 percent slide on speculation investors will use the Taiwan dollar as a funding currency for so-called carry trades.
"Persistent outflows are going to be a factor for the currency," said Steven Chang, global markets vice president in Hong Kong at State Street Bank & Trust Co. "Investors will also resume the carry and that's a negative for the Taiwan dollar currency too."
The Taiwan dollar dropped 0.2 percent to NT$33.029 at 4 p.m.
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