The Taiwanese dollar surged the most among major Asian currencies as investors bought more local assets motivated by prospects of faster economic growth.
A local manufacturing index jumped to the highest level in five months in February, while analysts forecast exports orders report due Tuesday to indicate growth. China, Taiwan’s biggest export market, reduced interest rates last weekend.
The Taiwan’s dollar appreciated 0.3 percent to trade at NT$31.416 versus the dollar, according to data released by Taipei Forex Inc. It had earlier rose to NT$31.332, its highest level since Jan. 29. The one-month non-deliverable forwards plunged 0.1 percent to steady at NT$31.476. Foreign investors purchased a net of Taiwanese stocks, the 14th consecutive day of straight net purchases, to bring this year’s net inflows to $5.3 billion.
“The island’s economy is one of the better stories in terms of economic numbers, export numbers,” Irene Cheung, a Singapore currency strategist at Australia & New Zealand Banking Group Ltd, told Bloomberg News.
Elsewhere, the Chinese yuan fell to as much as 6.274 versus the dollar after interest rates were slashed for the second time within a three-month period. The ruble fell 0.9 percent, along with the real, which tumbled 1.4 percent. The ruble, which had earlier recorded its best ever performance in February, fell to 62.15 versus the dollar.
The South African rand dropped to the lowest level in one week after manufacturing data missed expectations. The February’s purchasing managers’ index plunged to 47.6 against the expected 51.5, pushing the rand 0.7 percent lower. The weak manufacturing data follows another disappointing trade deficit data released last week that showed that trade gap was 24.2 billion rand ($2.1 billion) was the biggest since 2010. To register for a free 2-week subscription to ForexMinute Premium Plan, visit www.forexminute.com/newsletter.
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