Asian currencies mostly declined this week, led by the Indonesian rupiah, as an 18 percent slide in China’s benchmark share index over the past month raised concerns about the strength of an economic recovery.
Malaysia’s ringgit, the Indian rupee and the Thai baht also dropped before a US Labor Department report yesterday that showed the number of people out of work rose to the highest level in 26 years last month. South Korea’s won advanced for a second week on speculation investors will increase holdings of the nation’s assets as economic growth accelerates.
The rupiah dropped 0.6 percent this week to 10,115 per US dollar in Jakarta, according to data compiled by Bloomberg. The ringgit fell 0.2 percent to 3.5265 in Kuala Lumpur and the baht dropped 0.1 percent to 34.06 in Bangkok. Korea’s currency climbed 0.3 percent to 1,241.20.
The yen posted a fourth weekly gain against the dollar as investors consider the currency as a so-called safe-haven given the outlook for a slow global recovery. The Japanese currency traded at ¥92.96 per dollar in New York of Friday, from ¥93.60 at the end of last week.
The New Taiwan dollar traded at NT$32.905 on Friday, compared with NT$32.925 at the end of last week.
Elsewhere, the Singapore dollar dropped 0.1 percent this week to S$1.4404 versus the greenback and India’s rupee fell 0.4 percent to 48.8613. The peso climbed 0.3 percent to 48.640.
The US dollar dropped against most of its major counterparts on speculation investors betting on a quick recovery in the global economy bought higher-yielding assets as G20 finance ministers convened.
The Brazilian real and South African rand posted the biggest advances against the greenback among the most-traded currencies this week as US employers slowed the rate of job cuts last month.
The greenback fell 0.6 percent to ¥93.01 on Friday, from ¥93.60 last Friday. The US currency was little changed at US$1.4311 per euro. The real climbed 2.2 percent to 1.8401 versus the US currency, and the rand advanced 2.1 percent to 7.5908.
The London interbank offered rate on three-month loans in dollars fell this week, declining for a 13th straight day on Friday to 0.31 percent, according to the British Bankers’ Association. The corresponding rate for funds in yen was higher at 0.38 percent.
The Australian dollar gained 1.2 percent this week to US$0.8515 and advanced 0.6 percent to ¥79.21.
CRITICAL MOVE: TSMC’s plan to invest another US$100 billion in US chipmaking would boost Taiwan’s competitive edge in the global market, the premier said The government would ensure that the most advanced chipmaking technology stays in Taiwan while assisting Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) in investing overseas, the Presidential Office said yesterday. The statement follows a joint announcement by the world’s largest contract chipmaker and US President Donald Trump on Monday that TSMC would invest an additional US$100 billion over the next four years to expand its semiconductor manufacturing operations in the US, which would include construction of three new chip fabrication plants, two advanced packaging facilities, and a research and development center. The government knew about the deal in advance and would assist, Presidential
‘DANGEROUS GAME’: Legislative Yuan budget cuts have already become a point of discussion for Democrats and Republicans in Washington, Elbridge Colby said Taiwan’s fall to China “would be a disaster for American interests” and Taipei must raise defense spending to deter Beijing, US President Donald Trump’s pick to lead Pentagon policy, Elbridge Colby, said on Tuesday during his US Senate confirmation hearing. The nominee for US undersecretary of defense for policy told the Armed Services Committee that Washington needs to motivate Taiwan to avoid a conflict with China and that he is “profoundly disturbed” about its perceived reluctance to raise defense spending closer to 10 percent of GDP. Colby, a China hawk who also served in the Pentagon in Trump’s first team,
SEPARATE: The MAC rebutted Beijing’s claim that Taiwan is China’s province, asserting that UN Resolution 2758 neither mentions Taiwan nor grants the PRC authority over it The “status quo” of democratic Taiwan and autocratic China not belonging to each other has long been recognized by the international community, the Mainland Affairs Council (MAC) said yesterday in its rebuttal of Beijing’s claim that Taiwan can only be represented in the UN as “Taiwan, Province of China.” Chinese Minister of Foreign Affairs Wang Yi (王毅) yesterday at a news conference of the third session at the 14th National People’s Congress said that Taiwan can only be referred to as “Taiwan, Province of China” at the UN. Taiwan is an inseparable part of Chinese territory, which is not only history but
INVESTMENT WATCH: The US activity would not affect the firm’s investment in Taiwan, where 11 production lines would likely be completed this year, C.C. Wei said Investments by Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) in the US should not be a cause for concern, but rather seen as the moment that the company and Taiwan stepped into the global spotlight, President William Lai (賴清德) told a news conference at the Presidential Office in Taipei yesterday alongside TSMC chairman and chief executive officer C.C. Wei (魏哲家). Wei and US President Donald Trump in Washington on Monday announced plans to invest US$100 billion in the US to build three advanced foundries, two packaging plants, and a research and development center, after Trump threatened to slap tariffs on chips made
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