Taiwan’s stock market decline hasn’t been caused by a weak New Taiwan dollar, the island’s central bank said Thursday.

The central bank said it made the statement after a media report cited a foreign brokerage as saying a weak New Taiwan dollar has caused Taiwan shares to plummet. It didn’t name the brokerage or the source of the report.

“Foreign investors buy New Taiwan dollars to enter the stock market and sell New Taiwan dollars after selling their shares,” the central bank said in the statement. “Weak shares aren’t caused by New Taiwan dollars, the cause and effect is the reverse,” it said.

The Weighted Price Index of the Taiwan Stock Exchange has declined 9.15% this week. At 0507 GMT, the index was down 2.8% at 6402.92.

As of Thursday’s midday break, the New Taiwan dollar is down 0.92% against the U.S. dollar this week. The U.S. dollar was trading at NT$31.811 at the break, slightly lower than Wednesday’s close of NT$31.835.

Source: http://www.djnewswires.com/eu

Random Posts