Asian currencies declined for a third week, led by the Philippine peso and the Indonesian rupiah, on concern China’s plan to restrict industrial production will hold back an economic recovery in the region.
The rupiah had its second weekly decline in more than two months as companies sought US dollars for month-end payments for imports and debt. Most currencies in the region gained on Friday, paring the week’s losses, after better-than-expected US gross domestic product data eased concern that a rebound in exports would falter.
“There’s been concern China might restrict lending, thereby curbing their growth and that will hamper sentiment in the region,” said Gundy Cahyadi, an economist in Singapore at IDEAglobal. “China is after all the driving factor that will bring the countries out of this recession.”
The peso dropped 0.8 percent in the past five days to 48.805 at the 4pm local close in Manila, data from Tullett Prebon PLC show. Indonesia’s currency slid 0.4 percent this week to 10,050 in Jakarta and India’s rupee fell 0.1 percent to 48.665 in Mumbai. The ringgit slid 0.2 percent this week to 3.52.
The New Taiwan dollar fell 0.1 percent in the past week to NT$32.925 on Friday.
The won rose 0.5 percent this week to 1,244.25 in Seoul, climbing yesterday after the nation posted a current-account surplus for a sixth month in July, helped by an increase in overseas shipments as the global economic slowdown eased.
Elsewhere, the Singapore dollar was little changed this week at S$1.4390. The Thai baht was at 34.01, unchanged from last Friday.
The US dollar gained against the euro on Friday on increased demand for safety as a drop in stocks encouraged investors to sell the 16-nation currency to limit losses.
The US dollar gained 0.3 percent to US$1.4294 per euro at 3:37pm in New York on Friday, from US$1.4341 on Thursday. The dollar advanced 0.1 percent to ¥93.60, from ¥93.52. The euro decreased 0.3 percent to ¥133.75, from ¥134.14 on Thursday.
Sterling was the biggest loser against the dollar among major currencies this month on concern the UK’s recession may last longer than in other countries. The Bank of England said on Aug. 6 it would expand its asset-purchase program, pumping money into the economy to stem the economic contraction.
The pound traded at £0.8808 per euro, compared with £0.8809 on Thursday, when it reached £0.8839, the weakest level since June 5. Sterling was at US$1.6280, compared with US$1.6284, and dropped 2.6 percent this month.
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
At least 35 people were killed and dozens more injured when a man plowed his car into pedestrians exercising around a sports center in the southern Chinese city of Zhuhai on Monday night. Footage showing bodies lying on the pavement appeared on social media in the hours after the crash, but had vanished by early Tuesday morning, and local police reported only “injuries.” It took officials nearly 24 hours to reveal that dozens had died — in one of the country’s deadliest incidents in years. China heavily monitors social media platforms, where it is common for words and topics deemed
Typhoon Usagi yesterday had weakened into a tropical storm, but a land warning issued by the Central Weather Administration (CWA) was still in effect in four areas in southern Taiwan. As of 5pm yesterday, Tropical Storm Usagi was over waters 120km south-southwest of Oluanpi (鵝鑾鼻), the southernmost tip of Taiwan proper, and was moving north at 9kph, CWA data showed. The storm was expected to veer northeast later yesterday. It had maximum sustained winds of 101kph, with gusts of up to 126kph, the data showed. The CWA urged residents of Kaohsiung, Pingtung County, Taitung County and the Hengchun Peninsula (恆春) to remain alert to
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