Asian currencies advanced, led by South Korea’s won and Indonesia’s rupiah, as reports showed China’s factory output and bank lending beat analysts’ estimates, buoying the outlook for a global economic recovery.
The won and Malaysia’s ringgit posted their best weekly gains since July after growth in industrial production in China accelerated for a fourth month last month. Chinese Premier Wen Jiabao (溫家寶) said on Thursday China would maintain its stimulus spending to ensure the world’s third-largest economy keeps expanding. Asian stocks rallied and the dollar weakened to a one-year low against currencies of its six major trading partners.
The won advanced 1.6 percent to 1,221.75 per US dollar in Seoul, versus 1,241.20 a week ago, according to data compiled by Bloomberg. The rupiah climbed 1.9 percent to 9,925 and the ringgit strengthened 1 percent to 3.4920. India’s rupee gained 0.7 percent to 48.56.
The New Taiwan dollar climbed as high as NT$32.600, the strongest level in three months, after President Ma Ying-jeou (馬英九) said he would refocus on a trade accord with China to boost cross-strait ties, saying Taiwan’s economy would return to growth at year-end. The currency rounded out a 0.9 percent weekly gain to NT$32.628.
Elsewhere, the Singapore dollar appreciated 1.1 percent to S$1.4225 from a week earlier. Thailand’s baht advanced 0.3 percent to 33.96 and the Philippine peso gained 0.7 percent to 48.325 per dollar. Vietnam’s dong traded at 17,831 versus 17,824 a week ago.
The US dollar meanwhile declined the most since May versus six major counterparts as the greenback became the cheapest funding currency, prompting investors to sell the dollar and buy riskier assets.
Sterling rose this week to a one-month high versus the dollar as the central bank refrained from expanding its asset-purchase program.
The yen advanced 2.5 percent to ¥90.71 versus the dollar and reached ¥90.21, the strongest level since Feb. 12. Japan’s currency gained 0.6 percent to ¥132.17 per euro. The euro increased 1.9 percent to US$1.4571 after reaching US$1.4634, the strongest level since Dec. 18.
The pound advanced to US$1.6742, the highest since Aug. 7, as the Bank of England (BOE) left unchanged its asset-purchase program of buying up to £175 billion (US$290 billion) in bonds in a sign policy makers believe the economy is recovering. The BOE kept the main rate at a record low of 0.5 percent.
DISRUPTIONS: The high-speed rail is to operate as normal, while several airlines either canceled flights or announced early departures or late arrivals Schools and offices in 15 cities and counties are to be closed today due to Typhoon Gaemi, local governments announced last night. The 15 are: Taipei, New Taipei City, Taoyuan, Tainan, Keelung, Hsinchu and Kaohsiung, as well as Yilan, Hualien, Hsinchu, Miaoli, Chiayi, Pingtung, Penghu and Lienchiang counties. People should brace for torrential rainfall brought by the storm, with its center forecast to make landfall on the east coast between tonight and tomorrow morning, the Central Weather Administration (CWA) said. The agency issued a sea warning for the typhoon at 11:30pm on Monday, followed by a land warning at 11:30am yesterday. As of
CASUALTY: A 70-year-old woman was killed by a falling tree in Kaohsiung as the premier warned all government agencies to remain on high alert for the next 24 hours Schools and offices nationwide are to be closed for a second day today as Typhoon Gaemi crosses over the nation, bringing torrential rain and whipping winds. Gaemi was forecast to make landfall late last night. From Tuesday night, its outer band brought substantial rainfall and strong winds to the nation. As of 6:15pm last night, the typhoon’s center was 20km southeast of Hualien County, Central Weather Administration (CWA) data showed. It was moving at 19kph and had a radius of 250km. As of 3pm yesterday, one woman had died, while 58 people were injured, the Central Emergency Operation Center said. The 70-year-old
SEA SEARCH: Nine crew members of a cargo ship had taken to the water after the vessel sunk off the southern coast, with a rescue effort under way, officials said The strongest typhoon to hit Taiwan in eight years yesterday killed three people and flooded parts of the nation’s second-biggest city, while rescuers were searching for nine sailors after their cargo ship sank in the storm. Typhoon Gaemi transformed streets in Kaohsiung into rivers, with some households flooded. Offices and schools were closed for the second consecutive day, with thousands of people evacuated. Three people died and 380 were injured due to strong winds and torrential rainfall brought by Typhoon Gaemi, the Central Emergency Response Center said. The typhoon made landfall in Yilan County’s Nanao Township (南澳) at midnight yesterday and departed Taiwan
SEVEN-YEAR TERM: Three other defendants were found guilty and sentenced in the trial over legislative office salaries, while a fourth was found not guilty of all charges Anne Kao (高虹安) yesterday was sentenced to seven years and four months in prison and suspended as Hsinchu mayor after the Taipei District Court found her guilty of contravening the Anti-Corruption Act (貪污治罪條例) and the Criminal Code. The court also deprived Kao of her civil rights for four years and she was suspended from office by the Ministry of the Interior. Article 78 of the Local Government Act (地方制度法) stipulates that a mayor of a special municipality will be suspended from office if they are found guilty of contravening the Anti-Corruption Act. Kao was accused of taking for her own use more than