The Taiwan dollar firmed to a two-week closing high on Wednesday on foreign fund inflows into the equity market, exporter deals for cash needs at the end of the month and increased risk appetite due to improving US data. The Taiwan dollar closed at T$33.658 to the US dollar, the strongest close since April 14 and higher than Tuesday's close of T$33.795.
Volume on the main Taipei Forex Inc exchange was moderate at $959 million, up from $825 million a day ago. Foreign funds bought about T$10 billion ($298 million) in Taiwan stocks, which rose 0.31 percent on Wednesday. "Investors looked favourably at China-Taiwan ties improving, in the short term and in the long term," said a dealer in Taipei.
On Sunday, top negotiators from China and Taiwan signed new financial services deals. China has also announced that it would allow its companies to invest in Taiwan from May 1.