Taiwan Central Bank Warns Against Speculation, Times Reports

By Yu-huay Sun

April 8 (Bloomberg) -- Taiwan’s central bank warned against speculation on the island’s dollar after the currency’s recent gains, the Commercial Times said, citing unidentified traders.

The Central Bank of the Republic of China (Taiwan) told traders at local banks not to keep short positions of the U.S. dollar, the Taipei-based, Chinese-language newspaper said. A short position is a bet a currency will depreciate.

The monetary authority bought between $400 million and $500 million of U.S. dollars yesterday to help drive down the local currency, the newspaper said.

Taiwan’s dollar snapped a five-day gain to drop 1 percent to NT$33.569 versus the greenback yesterday, according to Taipei Forex Inc.

To contact the reporter on the story: Yu-huay Sun in Taipei ysun7@bloomberg.net