Forwards on the Taiwan dollar rose by the most in three weeks on prospects the island’s stock market will attract more overseas money after the Federal Reserve pledged to keep interest rates low.
Bank of Taiwan’s role in implementing government policy bolsters its case to be the island’s first lender allowed to clear transactions in yuan, Chairman Liu Teng- cheng said in an interview.
Taiwan’s dollar forwards snapped a three-day drop as stocks rallied and a factory gauge in China, the island’s biggest export market, beat forecasts.
Bank of Taiwan plans to open a branch in Shanghai to offer banking services to Chinese clients.
The Federal Reserve cleared the way for the Bank of Taiwan to open a branch in New York.
Bank of Taiwan aims to perform due diligence on a possible purchase of Kuo Hua Life Insurance Co. before the year ends, the Economic Daily reported, citing Bank of Taiwan Chairwoman Susan Chang.
Taiwanese lenders led by Bank of Taiwan are taking their highest share of syndicated loans in Asia since 2010 as they expand outside the island’s saturated market to escape the worst margins in Asia-Pacific.
Taiwan’s dollar strengthened by the most since 2012 on speculation exporters are converting overseas earnings as the year ends.
The central banks of Taiwan and China signed a yuan clearing agreement as Asia’s biggest economy pushes the use of its currency in international trade.