The US dollar dipped against the euro on Friday as investors sought a safe haven despite economic reports that offered signs of a possible US recovery under way.
The euro was at US$1.5703 around 9pm GMT, up from US$1.5683 late on Thursday. The dollar rose to ¥107.85 from ¥107.19.
“Stronger economic data has driven the US dollar higher against many of the major currencies,” said Kathy Lien, chief strategist at Forex Capital Markets.
“New home sales, consumer confidence and durable goods were all better than the market expected, a sign that the mood of US consumers and businesses may be changing,” she said.
However, Lien warned: “Today’s economic releases were almost too good to be true and for that reason, we are cautiously bullish.”
US durable goods orders rose 0.8 percent last month, much stronger than analyst forecasts for 0.3 percent. Economists said the data suggested that US second-quarter GDP growth could prove healthy.
“Overall, a surprisingly strong report, which supports our view that second-quarter GDP increased by a solid 2.5 percent on the year,” said Paul Ashworth, senior US economist at Capital Economics.
The US government is due to release its initial estimate of second-quarter GDP growth on Thursday. Most analysts expect a smaller acceleration to a 1.8 percent pace.
Pummeled by housing and credit crises, the world’s largest economy grew 1 percent in the first quarter after an anemic 0.6 percent pace in the last three months of the year.
The US Federal Reserve said on Wednesday in its Beige Book report that US economic activity appears to have slowed to a crawl in the past weeks even as price pressures intensified.
The Fed’s latest survey of the US economy will be used by its policymakers for their Aug. 5 meeting. They are widely expected to leave the key interest rate unchanged at 2 percent.
In late New York trading, the pound was at US$1.9913, up from US$1.9865 late on Thursday. The dollar stood at 1.0366 Swiss francs, nearly unchanged from SF1.0364.
SECURITY: As China is ‘reshaping’ Hong Kong’s population, Taiwan must raise the eligibility threshold for applications from Hong Kongers, Chiu Chui-cheng said When Hong Kong and Macau citizens apply for residency in Taiwan, it would be under a new category that includes a “national security observation period,” Mainland Affairs Council (MAC) Minister Chiu Chui-cheng (邱垂正) said yesterday. President William Lai (賴清德) on March 13 announced 17 strategies to counter China’s aggression toward Taiwan, including incorporating national security considerations into the review process for residency applications from Hong Kong and Macau citizens. The situation in Hong Kong is constantly changing, Chiu said to media yesterday on the sidelines of the Taipei Technology Run hosted by the Taipei Neihu Technology Park Development Association. With
CARROT AND STICK: While unrelenting in its military threats, China attracted nearly 40,000 Taiwanese to over 400 business events last year Nearly 40,000 Taiwanese last year joined industry events in China, such as conferences and trade fairs, supported by the Chinese government, a study showed yesterday, as Beijing ramps up a charm offensive toward Taipei alongside military pressure. China has long taken a carrot-and-stick approach to Taiwan, threatening it with the prospect of military action while reaching out to those it believes are amenable to Beijing’s point of view. Taiwanese security officials are wary of what they see as Beijing’s influence campaigns to sway public opinion after Taipei and Beijing gradually resumed travel links halted by the COVID-19 pandemic, but the scale of
A US Marine Corps regiment equipped with Naval Strike Missiles (NSM) is set to participate in the upcoming Balikatan 25 exercise in the Luzon Strait, marking the system’s first-ever deployment in the Philippines. US and Philippine officials have separately confirmed that the Navy Marine Expeditionary Ship Interdiction System (NMESIS) — the mobile launch platform for the Naval Strike Missile — would take part in the joint exercise. The missiles are being deployed to “a strategic first island chain chokepoint” in the waters between Taiwan proper and the Philippines, US-based Naval News reported. “The Luzon Strait and Bashi Channel represent a critical access
Pope Francis is be laid to rest on Saturday after lying in state for three days in St Peter’s Basilica, where the faithful are expected to flock to pay their respects to history’s first Latin American pontiff. The cardinals met yesterday in the Vatican’s synod hall to chart the next steps before a conclave begins to choose Francis’ successor, as condolences poured in from around the world. According to current norms, the conclave must begin between May 5 and 10. The cardinals set the funeral for Saturday at 10am in St Peter’s Square, to be celebrated by the dean of the College
RSS