The Taiwanese dollar gained today after four days of declining against the U.S. dollar as the speculations that the U.S. senate will approve the $700 billion bail-out plan by the end of this week spurred confidence in the Asian currencies.
The Taiwans currency rose from the 8-month bottom versus its American counterpart with the whole third quarter of 2008 being the worst for TWD since the Asian crisis of 1997. Taiwans central bank intervened with about $600 million of USD yesterday to support the local currency on the Forex market.
The early fears of the investors, that the U. S. Congress wont pass the Paulsons $700 billion plan to buy out troubled assets, created a lot of risk aversion, which in its turn pushed Asian currencies to the bottom. Now the panic is cooling down and the traders expect that the plan will be accepted soon.
USD/TWD dropped from 32.130 to 32.045 as of 8:06 GMT today after closing at 32.275 during yesterdays trading session.
If you have any questions, comments or opinions regarding the Taiwan Dollar,
feel free to post them using the commentary form below.
Be First to Comment