Asian currencies fell for a fourth week, the longest stretch of losses this year, on speculation Europe’s debt crisis would stall the global economic recovery and hurt demand for the region’s exports.
Official reports this week showed China’s manufacturing probably contracted for a seventh month this month, Taiwan’s overseas shipments and factory output declined, and Malaysia grew at the slowest pace last quarter since June.
India’s rupee reached a record low even after the central bank took measures to boost US dollar supply to alleviate pressure on the currency.
“You still have massive problems in Europe and there are a lot of concerns about the slowdown in China,” said Thomas Harr, the Singapore-based head of Asian foreign-exchange strategy at Standard Chartered PLC. “There’s pressure on all Asian currencies at the moment.”
India’s rupee slid 1.7 percent this week to 55.3750 per US dollar in Mumbai, according to data compiled by Bloomberg. The Philippine peso weakened 1.2 percent to 43.755, Thailand’s baht lost 1.1 percent to 31.69, China’s yuan slipped 0.2 percent to 6.3439 and the New Taiwan dollar edged down 0.1 percent to NT$29.650.
The Bloomberg-JPMorgan Asia Dollar Index, which tracks the region’s 10 most-traded currencies excluding the yen, dropped 0.5 percent this week and touched 114.21 on Friday, the lowest level since Dec. 15. Funds based abroad pulled US$1.9 billion from equity markets in Taiwan, South Korea, Indonesia and Thailand this week, exchange data show.
China’s biggest lenders may miss their loan targets for the first time in at least seven years as the slowdown crimps credit, according to three bank officials with knowledge of the matter, who declined to be identified because they are not permitted to speak publicly.
Banks’ total new loans for this year will be about 7 trillion yuan (US$1.1 trillion), less than the government goal of 8 trillion yuan to 8.5 trillion yuan, one of the officials said.
Greece is heading for a second election on June 17 after an inconclusive vote this month ignited concern it may quit the euro.
“The downside risks to China’s growth are greater now as European leaders can’t make progress on solving their debt problems,” said Stella Lee, president of Success Futures & Foreign Exchange Ltd in Hong Kong. “The weak loan growth and the uncertainty in Europe are going to put yuan appreciation to a halt.”
The rupee fell to a record low of 56.3875 per US dollar on Thursday, prompting central bank Governor Duvvuri Subbarao to say policymakers would take the required steps to curb swings in the exchange rate.
Elsewhere, South Korea’s won fell 1.1 percent this week to 1,185.43 per US dollar. Malaysia’s ringgit dropped 0.6 percent to 3.1535 and earlier touched 3.1736, the lowest since Jan. 3, while Indonesia’s rupiah declined 1.3 percent to 9,474.
When an apartment comes up for rent in Germany’s big cities, hundreds of prospective tenants often queue down the street to view it, but the acute shortage of affordable housing is getting scant attention ahead of today’s snap general election. “Housing is one of the main problems for people, but nobody talks about it, nobody takes it seriously,” said Andreas Ibel, president of Build Europe, an association representing housing developers. Migration and the sluggish economy top the list of voters’ concerns, but analysts say housing policy fails to break through as returns on investment take time to register, making the
EARLY TALKS: Measures under consideration include convincing allies to match US curbs, further restricting exports of AI chips or GPUs, and blocking Chinese investments US President Donald Trump’s administration is sketching out tougher versions of US semiconductor curbs and pressuring key allies to escalate their restrictions on China’s chip industry, an early indication the new US president plans to expand efforts that began under former US president Joe Biden to limit Beijing’s technological prowess. Trump officials recently met with their Japanese and Dutch counterparts about restricting Tokyo Electron Ltd and ASML Holding NV engineers from maintaining semiconductor gear in China, people familiar with the matter said. The aim, which was also a priority for Biden, is to see key allies match China curbs the US
The popular Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) arbitrage trade might soon see a change in dynamics that could affect the trading of the US listing versus the local one. And for anyone who wants to monetize the elevated premium, Goldman Sachs Group Inc highlights potential trades. A note from the bank’s sales desk published on Friday said that demand for TSMC’s Taipei-traded stock could rise as Taiwan’s regulator is considering an amendment to local exchange-traded funds’ (ETFs) ownership. The changes, which could come in the first half of this year, could push up the current 30 percent single-stock weight limit
NOT TO WORRY: Some people are concerned funds might continue moving out of the country, but the central bank said financial account outflows are not unusual in Taiwan Taiwan’s outbound investments hit a new high last year due to investments made by contract chipmaker Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) and other major manufacturers to boost global expansion, the central bank said on Thursday. The net increase in outbound investments last year reached a record US$21.05 billion, while the net increase in outbound investments by Taiwanese residents reached a record US$31.98 billion, central bank data showed. Chen Fei-wen (陳斐紋), deputy director of the central bank’s Department of Economic Research, said the increase was largely due to TSMC’s efforts to expand production in the US and Japan. Investments by Vanguard International
RSS