Taiwan\'s dollar fell, snapping a five-day rally, on suspected intervention by the central bank. Government bonds were steady. The monetary authority sold the local currency toward the end of trading, according to two traders who declined to be identified as the central bank doesn\'t disclose such details. The currency rose as much as 0.2 per cent earlier on speculation the Central Bank of the Republic of China (Taiwan) will allow faster appreciation as inflation accelerated at the fastest pace in 16 months in June. Bonds steady Article continues below \"Some people say the central bank might let the currency rise a little more to tame inflation,\" said Tarsicio Tong, a Taipei-based foreign-exchange trader at the Union Bank of Taiwan. \"But the second half of the year is usually when overseas shipments peak. I\'m not sure if the central bank will allow the currency to strengthen that much.\" The Taiwan dollar fell 0.2 per cent to NT$28.801 against its US counterpart at the local close, according to Taipei Forex Inc. It touched NT$28.656 on Tuesday, the strongest level since June 3. Price factor The consumer-price index climbed 1.93 per cent from a year earlier last month, the most since February 2010. The median forecast of economists surveyed by Bloomberg was for a 1.75 per cent increase. The yield on the 2 per cent government bonds due July 2016 was little changed at 1.157 per cent, according to Gretai Securities Market. The overnight money-market rate, which measures interbank funding availability, was steady at 0.369 per cent, according to a weighted average compiled by the Taiwan Interbank Money Centre.