Wednesday, May 30, 2007

Taiwan Dollar Option Volatility to Rise as Central Bank Supports Currency

(Bloomberg) -- The volatility of options on the
Taiwan dollar may increase as speculation rises that the central
bank is supporting the currency in the foreign exchange market.

``The central bank has drawn a line in the sand,'' said
Claudio Piron, head of Asian currency research at JPMorgan Chase
in Singapore. ``The message from the central bank is that the
dollar-Taiwan exchange rate is capped, and they don't want to
see any progressive weakness in their currency.''


Read more at Bloomberg Currencies News

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