By Andrea Wong Nov. 30 (Bloomberg) -- Taiwan’s dollar surrendered earlier gains in the final minute of trading on speculation the central bank intervened to check appreciation that may hurt exports. The central bank bought the U.S. dollar, according to two traders who declined to be identified. The currency rose as much as 1.2 percent earlier as foreign investors pumped a net $1.8 billion into local shares this month. The government forecasts the island’s economy will grow 9.98 percent this year and 4.51 percent in 2011. “It’s all about the growth,” said Tarsicio Tong, a currency trader at Union Bank of Taiwan. “Investors are optimistic about Taiwan’s economy. The central bank has made it clear that stability of the currency is its top priority.” The Taiwan dollar dropped 0.2 percent to close at NT$30.850 versus the greenback, according to Taipei Forex Inc. It was trading 1.1 percent stronger at NT$30.470 one minute before trading ended. The currency fell 0.2 percent this month. Central Bank of China (Taiwan) Governor Perng Fai-nan said in parliament in Taipei yesterday that he wants to reduce hot money flows by half from the current level. The central bank has bought the U.S. dollar in late trading almost every day for the past seven months to curb gains that may hurt exports, according to people familiar with the matter who declined to be identified because of the sensitivity of the matter. Government bonds were set for a third consecutive monthly loss. The yield on the 2 percent note due July 2015 gained seven basis points this month to 0.990 percent, according to Gretai Securities Market, the island’s biggest exchange for bonds. Taiwan’s economy grew 9.8 percent in the three months through September, the fastest pace of growth in Asia’s 10 largest economies. --Editors: Andrew Janes, Tan Hwee Ann To contact the reporter on the story: Andrea Wong in Taipei at awong268@bloomberg.net To contact the editor responsible for this story: Sandy Hendry at shendry@bloomberg.net.

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