Friday, May 25, 2007

Asian Currencies: Taiwan Dollar Rises as Central Bank May Buy: Peso Gains

(Bloomberg) -- Taiwan's dollar had the strongest
close in almost three weeks on speculation the central bank will
buy the currency to stem losses after it reached a 17-month low
this week.

The currency posted its biggest weekly gain since the five
days ended Dec. 1 after the Economic Daily News, citing
unidentified traders, today said the central bank is stepping up
oversight of overseas mutual funds to slow the Taiwan dollar's
decline. A weaker currency adds to inflation by making imported
goods more expensive.


Read more at Bloomberg Currencies News

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