The US dollar advanced to a seven-week high against the yen and gained versus the euro for the first week in almost a month as US employers eliminated fewer jobs last month than economists forecast.
The yen dropped against all of its major counterparts this week and fell to the lowest level against the euro since June as the Labor Department’s payroll report encouraged Japanese investors to buy higher-yielding assets overseas. Treasury 10-year yields posted their biggest weekly increase since 2003, making US assets more attractive to international investors.
“The recovery is setting in relatively quickly,” said Ulrich Leuchtmann, head of currency strategy at Commerzbank AG in Frankfurt. “It’s positive for the dollar in the long term because when the economy recovers it’ll be clear that the US is coming out of the crisis better.”
The dollar climbed 3.1 percent to ¥97.57, from ¥94.68 on July 31. It touched ¥97.79 on Friday, the highest level since June 16.
The US currency appreciated 0.5 percent to US$1.4183 per euro, the first weekly advance since the five-day period ended July 10. The euro appreciated 2.5 percent to ¥138.41, from ¥134.99 a week earlier. It reached ¥138.72 on Friday, the highest level since June 5.
The pound dropped 0.2 percent to US$1.6684 this week as the Bank of England increased its asset-purchase plan by £50 billion (US$84 billion) on concern the recession is deeper than previously anticipated. Sterling reached US$1.7043 on Wednesday, the highest level since Oct. 21.
The yen declined 5.5 percent this week to ¥53.52 versus the Brazilian real and weakened 5 percent to ¥7.54 versus the Mexican peso on speculation investors will buy assets sensitive to global growth. Japan’s 0.1 percent target lending rate compares with 8.75 percent in Brazil and 4.5 percent in Mexico.
Asian currencies rose this week, led by the Malaysian ringgit and the Philippine peso, as signs a global economic recovery is gathering pace bolstered demand for emerging-market assets.
The ringgit reached a two-month high against the dollar and the peso had its best week since May after reports showed manufacturing picked up last month in the US, Europe and China.
Indonesia’s rupiah climbed to its strongest level in nine months before paring gains amid concern the central bank will combat appreciation to support exporters.
The ringgit climbed 0.3 percent this week to 3.5065 per dollar in Kuala Lumpur, according to data compiled by Bloomberg.
The Malaysian currency reached 3.4840 on Wednesday, the highest since June 3.
The peso advanced 0.7 percent to 47.755 and the rupiah was little changed at 9,965. The Indonesian currency reached 9,850 on Tuesday, its strongest level since October.
The New Taiwan dollar gained 0.1 percent this week to NT$32.792 versus the greenback, while the won rose 0.3 percent to 1,224.90 and the Singapore dollar rose 0.2 percent to S$1.4373. The Thai baht traded at 33.94 compared with 34.01 last Friday.
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
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,”
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
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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