Asian currencies fell this week, led by the South Korean won and India’s rupee, as concern about the pace of a global economic recovery and the risk of debt defaults deterred investment in emerging-market assets.
State-run Dubai World met with creditors to restructure US$26 billion of borrowings and Fitch Ratings downgraded its credit rating for Greece. US Federal Reserve Chairman Ben Bernanke said on Monday the US economy faces “formidable headwinds” that will keep expansion to a “moderate” pace.
The won slid 1 percent this week to 1,164.05 per US dollar, according to data compiled by Bloomberg. The Indian rupee weakened 0.5 percent to 46.53 and the Singapore dollar dropped 0.6 percent to S$1.3892.
Malaysia’s ringgit traded near a one-month low as the FTSE Bursa Malaysia KLCI Index lost 0.8 percent this week. The ringgit weakened 0.5 percent to 3.3995 per US dollar in Kuala Lumpur, according to data compiled by Bloomberg. It reached 3.4125 on Dec. 9, the weakest level since Nov. 6.
The New Taiwan dollar weakened 0.3 percent to NT$32.278 against the greenback this week.
The Indonesian rupiah fell 0.3 percent to 9,443 and the Philippine peso dropped 0.3 percent to 46.13. The Thai baht was little changed at 33.10, while the yuan traded at 6.8277 from 6.8270 last Friday.
The US dollar advanced to a two-month high against the euro as a bigger-than-forecast increase in retail sales and consumer sentiment indicated the US economic recovery may be gaining momentum.
The US dollar appreciated 1.7 percent to US$1.4615 per euro this week, from US$1.4858 last Friday. It touched US$1.4586 on Friday, the strongest level since October.
The greenback decreased 1.6 percent to ¥89.10, from ¥90.56 last week. The euro dropped 3.2 percent to ¥130.24, from ¥134.54 last week.
Sterling fell for a fourth consecutive week, declining 1.3 percent to US$1.6259 on concern the UK government’s budget deficit will keep growing as the government spends more money to revive the economy.
RULES BROKEN: The MAC warned Chinese not to say anything that would be harmful to the autonomous status of Taiwan or undermine its sovereignty A Chinese couple accused of disrupting a pro-democracy event in Taipei organized by Hong Kong residents has been deported, the National Immigration Agency said in a statement yesterday afternoon. A Chinese man, surnamed Yao (姚), and his wife were escorted by immigration officials to Taiwan Taoyuan International Airport, where they boarded a flight to China before noon yesterday, the agency said. The agency said that it had annulled the couple’s entry permits, citing alleged contraventions of the Regulations Governing the Approval of Entry of People of the Mainland Area into the Taiwan Area (大陸地區人民進入台灣地區許可辦法). The couple applied to visit a family member in
CELEBRATION: The PRC turned 75 on Oct. 1, but the Republic of China is older. The PRC could never be the homeland of the people of the ROC, Lai said The People’s Republic of China (PRC) could not be the “motherland” of the people of the Republic of China (ROC), President William Lai (賴清德) said yesterday. Lai made the remarks in a speech at a Double Ten National Day gala in Taipei, which is part of National Day celebrations that are to culminate in a fireworks display in Yunlin County on Thursday night next week. Lai wished the country a happy birthday and called on attendees to enjoy the performances and activities while keeping in mind that the ROC is a sovereign and independent nation. He appealed for everyone to always love their
‘EXTREME PRESSURE’: Beijing’s goal is to ‘force Taiwan to make mistakes,’ Admiral Tang Hua said, adding that mishaps could serve as ‘excuses’ for launching a blockade China’s authoritarian expansionism threatens not only Taiwan, but the rules-based international order, the navy said yesterday, after its top commander said in an interview that the Chinese People’s Liberation Army (PLA) could blockade the nation at will. The object of Beijing’s expansionist activities is not limited to Taiwan and its use of pressure is not confined to specific political groups or people, the navy said in a statement. China utilizes a mixture of cognitive warfare and “gray zone” military activities to pressure Taiwan, the navy said, adding that PLA sea and air forces are compressing the nation’s defensive depth. The navy continues to
MISSILE MISSION: The Chungshan Institute of Science and Technology said it does not make policy, but would be glad to obtain certification to assemble the missiles The Ministry of National Defense-affiliated Chungshan Institute of Science and Technology is in the process of getting certified to assemble an additional 1,985 Stinger missiles on top of those from US arms sales, a senior defense official said yesterday. Washington is to send a team to Taiwan to evaluate the institute’s manufacturing capabilities and information security, said the official, who commented on condition of anonymity. The ministry initially bought 500 missiles for the army and navy, but later increased the order to 2,485 in response to an increase in Beijing’s military activities around the nation, and to meet the army’s urgent need