Taiwan Dollar’s Appreciation Contained by Central Bank

The Taiwan dollar fell today as the central bank’s policy makers attempt to prevent the speculation leading to the currency’s appreciation.

The Central Bank of the Republic of China (Taiwan) takes measures to ensure that the loans won’t be used in the speculation and set the one-week deadline to invest or repatriate the money brought into the country. Such actions make the traders to avoid the Taiwan currency, despite the fact it’s considered the most undervalued currency among the Asian currencies.

USD/TWD rose to 32.277 as of 10:56 GMT today after opening at 32.262. EUR/TWD jumped to about 39.672 from the opening rate of 39.214.

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