Indonesia’s rupiah completed its biggest weekly drop in seven months and led losses in Asian currencies as overseas investors dumped emerging-market assets on concern a global recovery is stalling.
The Bloomberg-JPMorgan Asia Dollar Index, which gauges the strength of the 10 most active regional currencies excluding the yen, slumped 0.5 percent this week and Asian stocks slid.
The Philippine peso was near a seven-week low on concern a widening budget deficit will erode investor confidence.
The rupiah declined 2.9 percent this week to 10,400 per dollar in Jakarta, according to data compiled by Bloomberg. South Korea’s won fell 1.1 percent to 1,268.40, while Malaysia’s ringgit slid 0.9 percent to 3.5360.
The MSCI Asia-Pacific Index of stocks dropped 3.8 percent this week, the most since March 6, as investors favored safer bets than emerging-market assets. The ICE’s Dollar Index, which tracks the greenback against the currencies of six major trading partners, has jumped 1.5 percent in the past three weeks.
The won fell as higher crude oil prices boosted the nation’s fuel bill. The currency traded near a three-week low after US Secretary of Defense Robert Gates ordered defensive measures be taken should North Korea attempt to fire a missile toward Hawaii. The communist state last month tested a nuclear weapon and threatened to attack South Korea.
The New Taiwan dollar declined 0.2 percent this week to NT$32.872 against the US currency and India’s rupee dropped 1.3 percent to 48.255. Thailand’s baht slipped 0.1 percent to 34.15, while Singapore’s dollar weakened 0.3 percent S$1.4563. China’s yuan traded at 6.8362 versus 6.8338 last Friday.
The US dollar declined against most of its major counterparts as speculation the global recession is easing prompted investors to buy higher-yielding assets.
Sterling rose for the first time in three days versus the dollar after Bank of England Governor Mervyn King said policy makers are seeing evidence that the UK’s economic contraction is beginning “to flatten off.”
Sterling gained 1.1 percent to US$1.6507 after trading on Thursday as low as US$1.6189, the weakest level since June 9. The pound advanced 0.7 percent to £0.8452 per euro on Friday.
The US currency declined 0.4 percent to US$1.3952 versus the euro at 4:21pm in New York, from US$1.39 on Thursday. It touched US$1.4012, the weakest level since Monday. The yen traded at ¥134.27 against the euro, compared with ¥134.17, and advanced 0.3 percent to ¥96.23 versus the US dollar, from ¥96.47.
For the week, the US dollar appreciated 0.4 percent against the euro, trading in a range of US$1.3750 and US$1.40 after declining to US$1.4338 on June 3, the weakest level this year. The yen appreciated 2.8 percent versus the euro, the first weekly increase since the five days ended May 15, and gained 2.4 percent versus the dollar.
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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