The New Taiwan dollar rose on Friday, strengthening in tandem with currencies and shares across Asia’s developing nations, as signs that the global financial crisis is easing bolstered demand for emerging-market assets.
The currency has gained about 7 percent against the US dollar since reaching an eight-year low of NT$35.297 in March. The US Federal Reserve said on Thursday it would end one emergency funding program and scale back two others, a sign markets are stabilizing after banks worldwide reported credit losses of almost US$1.5 trillion in the past two years. Overseas investors added to their holdings of Taiwan stocks for a third day.
The Fed announcement “tells us that financial conditions are normalizing; it’s a confirmation of sentiment,” said Dwyfor Evans, a currency strategist at State Street Global Markets in Hong Kong. “The big picture is still in place, one of continued inflows into Taiwan, benefits from the relationship with China, and also continued benefits from what is still a risk-loving environment.”
The NT dollar rose 0.1 percent to close at NT$32.925 on Friday, according to Taipei Forex Inc. The currency will climb to NT$31.50 by the end of the year, Evans forecast.
Elsewhere, Indonesia’s rupiah and the Philippine peso had a weekly gain on optimism overseas investors will buy Asian bonds and stocks after the US Federal Reserve signaled US interest rates will be kept at near zero.
The rupiah was the biggest gainer this week among Asia’s 10 most-active currencies outside Japan as its 10-year bond yielded 7.6 percentage points more than similar-dated US debt, near the highest in a month.
The rupiah climbed 1.8 percent this week to 10,220 per US dollar in Jakarta on Friday, according to data compiled by Bloomberg. The peso rose 0.2 percent to 48.305 in Manila, according to Tullett Prebon PLC. The Thai baht rose 0.3 percent to 34.07.
The South Korean won fell 1.2 percent this week to 1,284.25 against the US currency, the Vietnamese dong was barely changed at 17,802 and Singapore’s dollar was little changed at S$1.4542.
The US dollar fell against most of its major counterparts after China repeated its call for a supranational currency “delinked” from sovereign nations.
The greenback headed for its biggest weekly loss against the euro in four weeks after the People’s Bank of China said the IMF should manage more of members’ foreign-exchange reserves. A rally in Treasuries this week pushed the yield on the benchmark 10-year note down the most since December, lowering expected returns.
The US currency declined 0.6 percent to US$1.4078 per euro at 3pm in New York, from US$1.3988 on Thursday, extending its loss for the week to 1 percent. The dollar fell 0.8 percent to ¥95.17 from ¥95.95 on Thursday and was poised for a 1.1 percent weekly decline, its third consecutive drop.
The Swiss franc rose against the euro and dollar on speculation traders will test the central bank’s resolve to keep its currency weaker.
The franc climbed 0.6 percent to SF1.5219 against the euro, one of only five major currencies to advance on Friday versus Europe’s 16-nation currency. The franc advanced 1.2 percent to SF1.0814 compared with the US dollar.
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).
The Mainland Affairs Council (MAC) yesterday vowed to investigate claims made in a YouTube video about China’s efforts to politically influence young Taiwanese and encourage them to apply for Chinese ID cards. The council’s comments follow Saturday’s release of a video by Taiwanese rapper Chen Po-yuan (陳柏源) and YouTuber “Pa Chiung (八炯)” on China’s “united front” tactics. It is the second video on the subject the pair have released this month. In the video, Chen visits the Taiwan Youth Entrepreneurship Park in Quanzhou in China’s Fujian Province and the Strait Herald news platform in Xiamen, China. The Strait Herald — owned by newspaper
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