07.12.2001
NT dollar falling through the floor
Development: The NT$ closed at NT$35.175 yesterday, down 8% from the
beginning of the year, breaking a 14 year record. Turnover reached US$660m, indicating
some support from the Central Bank (CBC).
Analysis: Not only has the NT$ already weakened beyond our NT$35/US$1
forecast, but also the CBC seems to be more tolerant in letting it depreciate further, in
an aim to boost the island’s export competitiveness.
Primasia View: We expect the NT$ to trade between NT$34.7 - 35.5 in the
short-term, and do not anticipate a sharp depreciation beyond NT$35.5. We do not expect
much good news on exports until 4Q01.
IrmakSurenkok@Primasia.com +886-[0]2-2547-8873 |
