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.
A Chinese freighter that allegedly snapped an undersea cable linking Taiwan proper to Penghu County is suspected of being owned by a Chinese state-run company and had docked at the ports of Kaohsiung and Keelung for three months using different names. On Tuesday last week, the Togo-flagged freighter Hong Tai 58 (宏泰58號) and its Chinese crew were detained after the Taipei-Penghu No. 3 submarine cable was severed. When the Coast Guard Administration (CGA) first attempted to detain the ship on grounds of possible sabotage, its crew said the ship’s name was Hong Tai 168, although the Automatic Identification System (AIS)
An Akizuki-class destroyer last month made the first-ever solo transit of a Japan Maritime Self-Defense Force ship through the Taiwan Strait, Japanese government officials with knowledge of the matter said yesterday. The JS Akizuki carried out a north-to-south transit through the Taiwan Strait on Feb. 5 as it sailed to the South China Sea to participate in a joint exercise with US, Australian and Philippine forces that day. The Japanese destroyer JS Sazanami in September last year made the Japan Maritime Self-Defense Force’s first-ever transit through the Taiwan Strait, but it was joined by vessels from New Zealand and Australia,
SECURITY: The purpose for giving Hong Kong and Macau residents more lenient paths to permanent residency no longer applies due to China’s policies, a source said The government is considering removing an optional path to citizenship for residents from Hong Kong and Macau, and lengthening the terms for permanent residence eligibility, a source said yesterday. In a bid to prevent the Chinese Communist Party (CCP) from infiltrating Taiwan through immigration from Hong Kong and Macau, the government could amend immigration laws for residents of the territories who currently receive preferential treatment, an official familiar with the matter speaking on condition of anonymity said. The move was part of “national security-related legislative reform,” they added. Under the amendments, arrivals from the Chinese territories would have to reside in Taiwan for
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
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