HSBC believes the Taiwan dollar has plenty of room to strengthen in 2011, possibly following the renminbi. However the island’s central bank is beginning to intervene to protect the exporting sector.

The New Taiwan dollar is a favourite of HSBC’s for appreciation and could be seen as a useful proxy to the renminbi this year, HSBC FX strategists believe.

“Given our expectation of a stronger renminbi this year and how...

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