The Taiwan dollar fell to a more than one-month low on Monday on foreign fund outflows as investors trimmed risky assets on weak US consumer data and after China markets fell on worries of overheating. The Taiwan dollar closed lower at T$32.985, the weakest finish since July 14. During the session, it fell to as low as T$32.995, the weakest intraday level since July 20.
"The local currency weakened as some investors got rid of their risky assets as regional markets tracked losses on Chinese stocks," said a dealer in Taipei. Chinese stocks slid 5.8 percent to their lowest in nearly eight weeks on Monday on worries about added shares supplies and commodity price declines.
Disappointing US consumer confidence data from the United States raised doubts about the strength of economic recovery, prompting investors to cut their long positions in risky assets. On Monday, foreign institutions sold a net T$6.335 billion ($193 million) in the island's shares, which closed 1.95 percent lower to log its worst daily percentage drop in five weeks.
The central bank also kept the Taiwan dollar weak by buying US dollars to keep the currency relatively weak as part of efforts to help the island's exporters. "But exporters helped limit the Taiwan dollar's loss by selling US dollars at around T$32.950," the dealer said.
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