By Bob Chen
April 20 (Bloomberg) -- Taiwan’s dollar slid to its lowest level in more than a week versus the U.S. currency on concern investor demand for emerging-market assets will cool as a global equities rally shows signs of stalling.
Seven of Asia’s 10 most-traded currencies outside Japan declined and the MSCI Asia-Pacific Index of stocks retreated from a three-month high. Taiwan may let mainland Chinese institutional investors invest up to 10 percent of their funds in Taiwan stocks, more than triple a 3 percent limit previously mooted, the Economic Daily News reported, citing unidentified government officials.
“The Taiwan dollar weakened because of the broad-based buying in the dollar; there’s talk that the recent rally is coming to an end,” said Daniel Soh, an economist at Forecast Pte in Singapore. “The momentum in the global equities market is getting weaker.”
Taiwan’s currency fell 0.2 percent to NT$33.886 per dollar as of 9:57 a.m. local time, according to Taipei Forex Inc. It touched NT$33.955, the weakest level since April 8.
The island will report March export orders, indicative of shipments in the following one to three months, on April 23. Overseas sales dropped for a seventh straight month in March, the longest slump in seven years. China, Taiwan’s top trade partner, reported last week that its economy expanded in the first quarter at the slowest pace in a decade.
To contact the reporters on this story: Bob Chen in Hong Kong at bchen45@bloomberg.net
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