The forex trading forecast for the Taiwan dollar is being driven by inflation right now. As inflation in Taiwan grows, the central bank there is more likely to allow the currency to gain in trading on the FX market in order to curb inflation.
``The central bank will likely utilize currency
appreciation as another policy tool in combating imported
inflation,'' Goldman's research team led by London-based Jim
O'Neill wrote in a monthly global report received by Bloomberg
today. ``The interest-rate differential vis-à-vis the U.S.
dollar has become more favorable.''
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