South Korea’s won led currency gains in Asia this week as improved earnings and evidence the global economy is recovering from a recession bolstered demand for emerging-market assets.
The Bloomberg-JPMorgan Asia Dollar Index had its best week in almost two months as China and Singapore this week reported economic growth that beat analysts’ estimates. Indonesia’s rupiah fell, trimming the week’s advance, after two separate hotel explosions in Jakarta on Friday.
The New Taiwan dollar had its biggest weekly gain since May on speculation a rebound in global demand for personal computers will boost exports.
The NT dollar appreciated 0.3 percent this week to NT$32.955.
The Taiwanese currency touched an almost two-week high on optimism an end to the global recession will fuel demand for local exports. Electronics account for about two-fifths of Taiwan’s overseas sales and China is the biggest buyer.
“The market has gradually moved back into risk appetite,” said Callum Henderson, head of currency strategy at Standard Chartered Plc in Singapore. “US corporate earnings and Chinese GDP were above expectations, all of that is supportive for the balance in equities and supportive for assets.”
The won jumped 1.8 percent this week to 1,259.3 per US dollar in Seoul, according to data compiled by Bloomberg. Singapore’s dollar strengthened 0.8 percent to S$1.4515, while India’s rupee rose 0.5 percent to 48.74.
The Asia Dollar Index climbed 0.6 percent this week, the most since May 22, as China on Thursday said GDP increased 7.9 percent in the second quarter from a year earlier, exceeding the median 7.8 percent forecast in a Bloomberg survey. The MSCI Asia-Pacific Index of stocks advanced 2.9 percent, the most since the five-day period ended May 8.
The rupiah fell 0.5 percent on Friday to 10,175 a dollar, trimming the week’s gain to 0.2 percent. Malaysia’s ringgit traded little changed at 3.5680 after touching 3.5535 on Thursday, a one-week high.
Elsewhere, the Philippine peso climbed 0.5 percent this week to 48.075 per US dollar and the Thai baht was little changed at 34.07. China’s yuan traded at 6.8317 versus 6.8328 last Friday.
The US dollar and the yen posted the biggest declines against the euro since May as corporate earnings topped forecasts and US reports showing gains in housing and a slower decline in industrial production.
The Canadian dollar advanced to a one-month high against the greenback as crude oil rebounded.
The US currency fell 1.2 percent to US$1.4102 per euro on Friday, from US$1.3936 last Friday. The yen lost 3 percent to 132.85 per euro, from 129 a week earlier. The declines were the biggest since the five-day period ended May 22. The Japanese currency fell 1.8 percent to ¥94.19.
The Mexican peso rebounded from a two-and-a-half-month low, rising 2.6 percent this week to 13.34 per dollar.
The yen appreciated against 13 of 16 most actively traded currencies in the past month, rising 1 percent versus the Mexican peso. The yen is weaker against the entire group this year.
The Canadian dollar appreciated the most of the 16 major currencies against the yen this week, rising 6.4 percent to ¥84.60, as crude oil gained.
Tropical Storm Usagi strengthened to a typhoon yesterday morning and remains on track to brush past southeastern Taiwan from tomorrow to Sunday, the Central Weather Administration (CWA) said yesterday. As of 2pm yesterday, the storm was approximately 950km east-southeast of Oluanpi (鵝鑾鼻), Taiwan proper’s southernmost point, the CWA said. It is expected to enter the Bashi Channel and then turn north, moving into waters southeast of Taiwan, it said. The agency said it could issue a sea warning in the early hours of today and a land warning in the afternoon. As of 2pm yesterday, the storm was moving at
UPDATED FORECAST: The warning covered areas of Pingtung County and Hengchun Peninsula, while a sea warning covering the southern Taiwan Strait was amended The Central Weather Administration (CWA) at 5:30pm yesterday issued a land warning for Typhoon Usagi as the storm approached Taiwan from the south after passing over the Philippines. As of 5pm, Usagi was 420km south-southeast of Oluanpi (鵝鑾鼻), Taiwan proper’s southernmost tip, with an average radius of 150km, the CWA said. The land warning covered areas of Pingtung County and the Hengchun Peninsula (恆春), and came with an amended sea warning, updating a warning issued yesterday morning to cover the southern part of the Taiwan Strait. No local governments had announced any class or office closures as of press time last night. The typhoon
DISCONTENT: The CCP finds positive content about the lives of the Chinese living in Taiwan threatening, as such video could upset people in China, an expert said Chinese spouses of Taiwanese who make videos about their lives in Taiwan have been facing online threats from people in China, a source said yesterday. Some young Chinese spouses of Taiwanese make videos about their lives in Taiwan, often speaking favorably about their living conditions in the nation compared with those in China, the source said. However, the videos have caught the attention of Chinese officials, causing the spouses to come under attack by Beijing’s cyberarmy, they said. “People have been messing with the YouTube channels of these Chinese spouses and have been harassing their family members back in China,”
The Central Weather Administration (CWA) yesterday said there are four weather systems in the western Pacific, with one likely to strengthen into a tropical storm and pose a threat to Taiwan. The nascent tropical storm would be named Usagi and would be the fourth storm in the western Pacific at the moment, along with Typhoon Yinxing and tropical storms Toraji and Manyi, the CWA said. It would be the first time that four tropical cyclones exist simultaneously in November, it added. Records from the meteorology agency showed that three tropical cyclones existed concurrently in January in 1968, 1991 and 1992.
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