TAIWAN INDUSTRIAL OUTPUT FALLS, CURRENCY BLAMED

  Taiwan's industrial production index,
  fell, largely as the result of the rising Taiwan dollar, by
  8.18 pct to 140.06 (base 1981) in February from a revised
  152.53 in January, the Economy Ministry said.
      It was the second consecutive monthly fall, after dropping
  nine pct in January, but it was still 26.49 pct up on February
  1986 following a very extended rise last year.
      The January figure was revised from a preliminary 154.82.
      A ministry official attributed the decline to falling
  production of non-metal products, textiles and transportation
  equipment, and less mining and house construction.
      The official said the decline was also caused by falling
  exports in February due to the climb of the Taiwan dollar,
  which has made Taiwanese products more expensive.
      He expected the decline to continue in the next few months
  because of further appreciation of the local dollar against the
  U.S. Currency.
      The Taiwan dollar advanced more than 15 pct against the
  U.S. Dollar since September 1985. It closed at 34.40 to the
  U.S. Dollar today, and is expected to rise to about 32 to the
  dollar by the end of this year, foreign bankers and economists
  said.
  

