TAIPEI (Taiwan News) — Analysts expect Taiwan’s currency to rebound following a five-month decline.
Eddie Cheung, senior emerging markets strategist at Credit Agricole CIB in Hong Kong told Bloomberg that he estimates that by December NT$31.1 will be worth US$1. Cheung said improved economic prospects in China and an expected cyclical change in the semiconductor market should lead to the improvement.
Bank of America strategist Cheung Chun Him said China is expected to mount a fiscal response to counter weakening growth, which will help the NT$. Cheung also said that the U.S. Federal Reserve is expected to pursue policy that will moderate the strength of the US$, and this will lead to a stronger NT$
US$1 currently buys NT$31.931. Taiwan’s central bank will announce a decision on the interest rate on Sept. 21 which will indicate the future direction for the currency.
