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Taiwan currency, Chen's approval
slump
TAIPEI - The New Taiwan
dollar's depreciation on Monday was a result of factors
other than President Chen Shui-bian's remarks on
cross-Strait ties over the weekend, a Central Bank of
China official said.
However, support for Chen
slumped after his controversial remarks backing a
referendum on formal independence from China, local
polls showed on Tuesday.
Chou A-ting, director
general of the Taiwan central bank's foreign exchange
department, said Chen's "one side, one country"
statement to describe Taiwan's status quo regarding
mainland China had no noticeable impact on the value of
the local currency and that a stronger US dollar is the
major reason behind the Taiwan unit's depreciation.
Chou admitted that the CBC intervened in the
day's trading session and added that the bank will
closely monitor the consequences of a continued outflow,
albeit small, of US dollars.
Compared with the
exchange-rate fluctuations of other foreign currencies,
Chou went on, the exchange rates between the Taiwan unit
and the greenback have been "relatively stable".
The South Korean won depreciated against the US
dollar by 1.13 percent between Aug 2 and Aug 5, falling
to 1,198 from 1,184. The Japanese yen fell by 0.23
percent against the US dollar, dropping to 118.89 from
119.17, while the euro depreciated by 0.54 percent,
declining to 0.9824 from 0.9877. At the same time, the
New Taiwan dollar dropped to 33.825 from 33.723,
representing a 0.3 percent fall.
However, market
dealers had a different outlook and forecast that the
Taiwan unit might dwindle to 34.2 against the US dollar
should market confidence be further eroded by Chen's
remarks.
A survey by Taiwan cable network ETTV
showed Chen's approval rate sinking to a record low 46
percent after he said on Saturday that holding a
referendum on independence was a "basic human right" and
in reality there was "one country on each side" of the
Taiwan Strait. That compared with more than 80 percent
approval when he took power in 2000 and 60 percent this
May on the second anniversary of his ascension to the
presidency. However, the same poll showed 58 percent of
respondents in favor of an independence plebiscite.
A separate poll by the China Times newspaper
found that 49 percent of respondents disapproved of
Chen's handling of relations with the mainland, and a
majority said his remarks would hurt Taiwan's economy
and domestic stability.
(Asia Times Online/Asia
Pulse/CNA)
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