Weak economy could prompt Taiwan currency strengthening

While in Europe and the US a steep yield curve has typically been a sign of currency strength and a flat yield curve has often been a sign of currency weakness, in Asia the reverse tends to be the case. In the former there is the presumption that interest rates will fall and currencies will weaken as part of a broader easing of monetary conditions, said Desmond Supple, head of research Asia at Barclays Capital in Singapore. "In Asia, because liquidity predominates, the reverse is true of cur

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