Taiwan’s Dollar Surges as Economic Growth Beats Expectations, Swedish Kroner Plunges

0
82

Taiwan’s Dollar Surges as Economic Growth Beats Expectations, Swedish Kroner PlungesThe Taiwanese dollar advanced this week as the market bet investor funds will flow into the country due to surging stocks and economic growth.

Taiwan’s GDP grew 3.04 percent in the first three months from a year ago, which exceeded the median estimate of a 3 percent increase in a Bloomberg poll of economists. Foreign investors have bought $3.1 billion worth of the country’s stocks in the second quarter, while the key equity index touched a near three-year high on April 23rd.

The Taiwanese dollar has advanced 0.5 percent to NT$30.182 per U.S. dollar this week by 10:44 a.m. in Taipei. The country’s markets were closed on Thursday for a public holiday.

**relatedarticle**

“The Taiwanese dollar has been supported by a healthy external position, but the price action has been limited,” Frances Cheung, a Hong Kong-based head of Asian rates strategy at Credit Agricole CIB told Bloomberg.

One-month non-deliverable forwards priced in Taiwan dollar jumped 0.4 percent to NT$30.166 this week against the U.S. dollar, based on Bloomberg data. The one-month implied volatility, which measures the expected shifts in the exchange rate used to assign prices to options, rose 0.01 percentage point, or one basis point, to 3.51 percent.

The yield on 10-year government bonds plunged two basis points on Friday to 1.526 percent.

The Swedish kroner on the other hand plunged on disappointing manufacturing activity data. The purchasing managers’ index (PMI) of factory activity declined 55.5 points last month from March’s 56.5 points. To register for a free 2-week subscription to ForexMinute Premium Plan, visit www.forexminute.com/newsletter.

To contact the reporter of this story; Jonathan Millet at john@forexminute.com