Taiwan dollar surpasses decade-old record

China's yuan was little changed, trading near the strongest since a dollar link ended in 2005, after Japan's finance minister joined the US and European officials in calling for more currency flexibility.

The yuan closed at 7.0555 versus the dollar as of 5:30 p.m. in Shanghai, compared with 7.0540 on March 21, according to the China Foreign Exchange Trade System. It touched as strong as 7.0508 today, the highest since the peg to the dollar was scrapped in 2005. The currency has gained 3.6 per cent this year after rising about 7 per cent in 2007.

Taiwan's dollar rose to the highest level in more than a decade after Ma Ying-jeou of the Kuomintang Party won the presidential election, pledging to improve ties with China. South Korea's won gained as local stocks advanced.

The Taiwan dollar extended a 10-week rally after Ma was elected by a landslide in the March 22 vote, saying he would also improve the economy when he takes office May 20. Incumbent President Chen Shui-bian has restricted investment in the mainland, Taiwan's biggest market, due to a dispute over the island's sovereignty.