Taiwan Dollar Set to Replace Yuan as Asia’s Top Funding Currency
1 day, 3 hours ago

Taiwan Dollar Set to Replace Yuan as Asia’s Top Funding Currency

Live Mint  

-- The Taiwan dollar is on the verge of overtaking the yuan as Asia’s best carry-trade target given its lower risk of interest-rate and currency volatility. Taiwan’s currency may soon replace its mainland peer as the region’s favored carry trade tool, analysts say, citing Beijing’s efforts to support the yuan that can create wild swings in borrowing costs. “The Taiwan dollar has been one of the better funding currencies in Asia along with the offshore yuan, but with recent intervention risks in the yuan placing bigger chances of a short squeeze, Taiwan dollar becomes much more attractive,” said Stephen Chiu, chief Asia foreign-exchange and rates strategist at Bloomberg Intelligence. The central bank’s measures, ranging from setting an artificially strong reference exchange to draining liquidity and verbal warnings, have turned the offshore yuan into Asia’s third most volatile currency in the past month.

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History of this topic

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Live Mint  

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Firstpost  

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5 years, 5 months ago

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CNN  

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