Economics
North Asia Currency War Seen Heating Up on Taiwan Dollar Shorts
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Taiwan is winning allies in its battle to weaken the local dollar with sell calls mounting on Asia’s best-performing currency.
BNP Paribas SA said May 29 that it favors using options to short the island’s dollar, after the yen’s biggest weekly drop this year exacerbated a currency war between Japan, South Korea and Taiwan. Australia & New Zealand Banking Group Ltd and Westpac Banking Corp. are suggesting clients bet against the Taiwanese currency using derivatives and buy offshore yuan.