Asian currencies fell this week, led by South Korea’s won, as North Korea’s nuclear arms test and threat of military strikes prompted investors to seek refuge in the US dollar.
The Philippine peso and Malaysia’s ringgit weakened after the two nations reported worse-than-expected economic data for the first quarter.
South Korean Vice Finance Minister Hur Kyung-wook said on Friday the government was “closely monitoring” financial markets after North Korea conducted a nuclear weapons test on Monday and launched a series of short-range missiles.
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The won fell 0.6 percent this week to 1,255.25 per US dollar in Seoul, according to data compiled by Bloomberg. The peso declined 0.7 percent to 47.34 and the ringgit dropped 0.7 percent to 3.4950.
The Bloomberg-JPMorgan Asia Dollar Index, which tracks the region’s 10 most-active currencies excluding the yen, slipped 0.3 percent this week. It reached a seven-month high last Friday.
The yen tumbled 1.6 percent to ¥96.34 per US dollar as rising yields on US Treasuries and signs a global recession is easing prompted Japanese investors to send more funds abroad in search of better returns.
The New Taiwan dollar pared gains from the strongest level since December on speculation the central bank intervened to weaken the currency and aid exporters.
Taiwan’s central bank probably sold the currency in the last 15 minutes on Wednesday, the last day of trading for the week, said Henry Lin, a foreign-exchange trader at Shin Kong Commercial Bank (新光商銀) in Taipei.
The NT dollar rose earlier as US and Japanese data added to evidence a global recession is abating, bolstering demand for emerging-market assets.
Taiwan’s currency closed little changed at NT$32.650 per US dollar on Wednesday, according to Taipei Forex Inc. It reached NT$32.504, the strongest since Dec. 19.
Indonesia’s rupiah fell 0.5 percent this week to 10,285 per dollar on speculation importers increased dollar purchases to settle bills and debt payments.
Elsewhere, the Singapore dollar dropped 0.4 percent to S$1.4472. China’s yuan declined 0.07 percent to 6.8281, the biggest slide in two months, before the nation’s financial markets closed for a public holiday on Thursday and Friday.
India’s rupee rose 0.8 percent, trimming losses this week to 0.3 percent, after the economy expanded more than expected in the first quarter. The currency gained 6 percent this month, Asia’s best performer excluding the yen.
The US dollar declined beyond US$1.41 against the euro for the first time this year as evidence the global recession is easing sent investors in search of assets with higher returns.
The US currency also posted its biggest monthly drop versus the euro this year and fell yesterday against major counterparts including the Australian and New Zealand dollars as South Korea said its state pension fund plans to hold fewer Treasuries.
The US securities were poised for a second month of declines on concern debt sales will overwhelm demand.
The dollar weakened 1.4 percent to US$1.4136 per euro at 4:17pm in New York, from US$1.3941 on Friday, extending its decline this month to 6.4 percent, the biggest since December, when it dropped 9.2 percent. The dollar depreciated 1.7 percent to ¥95.24 from ¥96.85. The yen advanced 0.3 percent to ¥134.67 per euro from ¥135.04 yesterday.
Sterling increased as much 1.6 percent to US$1.6198, the highest level since Nov. 5, and posted a 9.3 percent monthly gain, the biggest since 1985.
The Taipei MRT is open all night tonight following New Year’s Eve festivities, and is offering free rides from nearby Green Line stations. Taipei’s 2025 New Year’s Eve celebrations kick off at Taipei City Hall Square tonight, with performances from the boy band Energy, the South Korean girl group Apink, and singers Gigi Leung (梁詠琪) and Faith Yang (楊乃文). Taipei 101’s annual New Year’s firework display follows at midnight, themed around Taiwan’s Premier12 baseball championship. Estimates say there will be about 200,000 people in attendance, which is more than usual as this year’s celebrations overlap with A-mei’s (張惠妹) concert at Taipei Dome. There are
LOOKING FOR WHEELS: The military is seeking 8x8 single-chassis vehicles to test the new missile and potentially replace the nation’s existing launch vehicles, the source said Taiwan is developing a hypersonic missile based on the Ching Tien (擎天) supersonic cruise missile, and a Czech-made truck has been tentatively selected as its launch vehicle, a source said yesterday. The Ching Tien, formerly known as Yun Feng (雲峰, “Cloud Peak”), is a domestically developed missile with a range of 1,200km to 2,000km being deployed in casemate-type positions as of last month, an official said, speaking on the condition of anonymity. The hypersonic missile to be derived from the Ching Tien would feature improved range and a mobile launch platform, while the latter would most likely be a 12x12 single chassis
UP AND DOWN: The route would include a 16.4km underground section from Zuoying to Fongshan and a 9.5km elevated part from Fongshan to Pingtung Premier Cho Jung-tai (卓榮泰) yesterday confirmed a project to extend the high-speed rail (HSR) to Pingtung County through Kaohsiung. Cho made the announcement at a ceremony commemorating the completion of a dome at Kaohsiung Main Station. The Ministry of Transportation and Communications approved the HSR expansion in 2019 using a route that branches off a line from Zuoying Station in Kaohsiung’s Zuoying District (左營). The project was ultimately delayed due to a lack of support for the route. The Zuoying route would have trains stop at the Zuoying Station and return to a junction before traveling southward to Pingtung County’s Lioukuaicuo Township (六塊厝).
Parts of the nation, including in the south, could experience temperatures as low as 7°C early tomorrow morning, the Central Weather Administration (CWA) said yesterday. A strong continental cold air mass coupled with the effect of radiative cooling would bring cold weather to several northern cities and counties, and could even affect areas as far south as Tainan early tomorrow, the CWA said. Keelung, Taipei, New Taipei City and Taoyuan, and Hsinchu, Miaoli and Yilan counties would experience temperatures below 10°C until this evening, according to cold surge advisories issued by the weather agency. The weather across the nation is forecast to remain
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