The US dollar posted the biggest weekly gain versus the euro in more than two months on optimism the worst of the financial crisis in the US is over.
The Dollar Index, which tracks the greenback against the currencies of six of its biggest trading partners, completed the largest weekly advance since November after Wells Fargo & Co’s profit beat estimates, triggering the steepest one-day gain on record in the Standard & Poor’s 500 Banks Index.
The euro dropped the most against the yen since January on concern the European Central Bank will cut its benchmark interest rate to below 1 percent to spur growth.
“Wells Fargo’s results augur well for US banks’ earnings and point to an easing in the financial crisis,” said Masanobu Ishikawa, general manager of foreign exchange at Tokyo Forex & Ueda Harlow Ltd, Japan’s largest currency broker. “The dollar is likely to be bought.”
The dollar climbed 2.3 percent this week to US$1.3143 per euro on Friday, the biggest gain since the five days through Jan. 23. It touched US$1.3090 on Friday, the strongest level since March 18.
The greenback strengthened 1.1 percent to US$1.4672 per pound and advanced 0.6 percent to 1,333 South Korean won.
The yen appreciated 2.3 percent to ¥132.18 per euro, the biggest gain since the week to Jan. 23. It was little changed against the dollar at ¥100.24 from ¥100.31 last Friday.
The New Taiwan dollar this week had its first weekly decline since February after the central bank reportedly stepped in to weaken the currency and help exporters weather a global recession.
The currency dropped 1.3 percent to NT$33.8 versus the US dollar this week, the worst performance among Asia’s 10 most-used currencies. Overseas sales, which are equivalent to about 70 percent of Taiwan’s GDP product, dropped for a seventh straight month last month, the government reported on Tuesday.
“Investors are worried it may take a long time for exports to recover,” said Henry Lin, a foreign-exchange trader at Shin Kong Commercial Bank (新光銀行) in Taipei. “Demand for dollars surged after the Taiwan dollar reached a three-month high this week.”
South Korea’s won, Indonesia’s rupiah and India’s rupee strengthened for a fifth straight week as signs a global recession is abating bolstered investors’ risk appetite, helping Asia’s emerging markets attract funds.
The won strengthened 0.6 percent this week to 1,333 per dollar as of 3pm in Seoul, according to Seoul Money Brokerage Services Ltd.
The yuan was little changed against the US dollar this week at 6.8338 per dollar from 6.8348 last Friday on speculation the government will keep the currency from appreciating to aid exporters as overseas sales slide.
The Philippine peso fell 0.3 percent to 48.03 per dollar, ending three weeks of gains.
PLA MANEUVERS: Although Beijing has yet to formally announce military drills, its coast guard vessels have been spotted near and around Taiwan since Friday The Taiwanese military is on high alert and is closely monitoring the Chinese People’s Liberation Army’s (PLA) air and naval deployments after Beijing yesterday reserved seven airspace areas east of its Zhejiang and Fujian provinces through Wednesday. Beijing’s action was perceived as a precursor to a potential third “Joint Sword” military exercise, which national security experts said the PLA could launch following President William Lai’s (賴清德) state visits to the nation’s three Pacific allies and stopovers in Hawaii and Guam last week. Unlike the Joint Sword military exercises in May and October, when Beijing provided detailed information about the affected areas, it
CHINA: The activities come amid speculation that Beijing might launch military exercises in response to Lai’s recent visit to Pacific allies The Ministry of National Defense (MND) yesterday said China had nearly doubled the number of its warships operating around the nation in the previous 24 hours, ahead of what security sources expect would be a new round of war games. China’s military activities come amid speculation Beijing might organize military drills around the nation in response to President William Lai’s (賴清德) recent visit to Pacific allies, including stops in Hawaii and Guam, a US territory. Lai returned from the week-long trip on Friday night. Beijing has held two rounds of war games around Taiwan this year, and sends ships and military planes
Five flights have been arranged to help nearly 2,000 Taiwanese tourists return home from Okinawa after being stranded due to cruise ship maintenance issues, the Ministry of Transportation and Communications announced yesterday. China Airlines Ltd (中華航空), and EVA Airways Corp (長榮航空) have arranged five flights with a total of 748 additional seats to transport 1,857 passengers from the MSC Bellissima back to Taiwan, the ministry said. The flights have been scheduled for yesterday and today by the Civil Aviation Administration, with the cruise operator covering all associated costs. The MSC Bellissima, carrying 4,341 passengers, departed from Keelung on Wednesday last week for Okinawa,
US president-elect Donald Trump said he would “never say” if Washington is committed to defending Taiwan from China, but “I would prefer that they do not do it [ an attack],” adding that he has a “good relationship” with Chinese President Xi Jinping (習近平). “I never say because I have to negotiate things, right?” Trump said in an interview with NBC’s Meet the Press host Kristen Welker after saying he would not reveal his incoming administration’s stance on Taiwan’s defense in the event of an attack. Asked the question again, Trump, in a reference to China, said: “I would prefer that they
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