The US dollar posted its first monthly gain since June versus the currencies of major US trading partners as the US Federal Reserve moved closer to withdrawing stimulus measures that helped cause the greenback to fall 4.2 percent for the year.
The dollar advanced to a three-month high against the yen and rallied versus the euro after the Fed said at the conclusion of its Dec. 16 meeting that job losses are “abating.” The greenback pared its annual decrease against the Australian dollar and Norwegian krone as a surge in Treasury yields made the US currency less attractive as a funding vehicle for the purchase of higher-yielding assets.
The dollar appreciated 4.8 percent to US$1.4321 per euro on Thursday, from US$1.5005 at the end of November, paring its loss for last year to 2.5 percent. The US currency advanced 7.7 percent to ¥93.02, from ¥86.41, and gained 2.6 percent for the year. It touched ¥93.15 on Thursday, the highest level since Sept. 7. The euro increased 2.7 percent to ¥133.20 last month and advanced 5.1 percent last year.
The pound posted its first annual gain against both the dollar and the euro since 2006 last year and gilts had their first loss in a decade as evidence mounted that the UK is emerging from its longest recession on record.
The UK currency rose 1.1 percent against the US dollar in the holiday-shortened week to US$1.6138 as of 3:30pm on Thursday in London, extending its gain for the year to 11 percent. At the end of 1999, the pound traded at US$1.6182. The pound climbed 1.7 percent since last week to £0.8873 per euro, appreciating 7.9 percent in the 12 months.
Asian currencies strengthened this year, led by Indonesia’s rupiah and South Korea’s won, as regional economies led the recovery from a global slump.
The New Taiwan dollar strengthened 2.6 percent to NT$32.03 versus the greenback, the best annual performance since 2004. It reached a 15-month high of NT$31.948 on Thursday.
Elsewhere, India’s rupee gained 4.4 percent this year to 46.64 per dollar, Thailand’s baht rose 4.1 percent to 33.33, Singapore’s dollar climbed 3.1 percent to S$1.4014, and the Philippine peso advanced 2.8 percent to 46.225. China’s yuan and Hong Kong’s dollar were little changed at 6.8270 and 7.7551, respectively.
FREEDOM OF NAVIGATION: The UK would continue to reinforce ties with Taiwan ‘in a wide range of areas’ as a part of a ‘strong unofficial relationship,’ a paper said The UK plans to conduct more freedom of navigation operations in the Taiwan Strait and the South China Sea, British Secretary of State for Foreign, Commonwealth and Development Affairs David Lammy told the British House of Commons on Tuesday. British Member of Parliament Desmond Swayne said that the Royal Navy’s HMS Spey had passed through the Taiwan Strait “in pursuit of vital international freedom of navigation in the South China Sea.” Swayne asked Lammy whether he agreed that it was “proper and lawful” to do so, and if the UK would continue to carry out similar operations. Lammy replied “yes” to both questions. The
Two US House of Representatives committees yesterday condemned China’s attempt to orchestrate a crash involving Vice President Hsiao Bi-khim’s (蕭美琴) car when she visited the Czech Republic last year as vice president-elect. Czech local media in March last year reported that a Chinese diplomat had run a red light while following Hsiao’s car from the airport, and Czech intelligence last week told local media that Chinese diplomats and agents had also planned to stage a demonstrative car collision. Hsiao on Saturday shared a Reuters news report on the incident through her account on social media platform X and wrote: “I
SHIFT PRIORITIES: The US should first help Taiwan respond to actions China is already taking, instead of focusing too heavily on deterring a large-scale invasion, an expert said US Air Force leaders on Thursday voiced concerns about the Chinese People’s Liberation Army’s (PLA) missile capabilities and its development of a “kill web,” and said that the US Department of Defense’s budget request for next year prioritizes bolstering defenses in the Indo-Pacific region due to the increasing threat posed by China. US experts said that a full-scale Chinese invasion of Taiwan is risky and unlikely, with Beijing more likely to pursue coercive tactics such as political warfare or blockades to achieve its goals. Senior air force and US Space Force leaders, including US Secretary of the Air Force Troy Meink and
Czech officials have confirmed that Chinese agents surveilled Vice President Hsiao Bi-khim (蕭美琴) during her visit to Prague in March 2024 and planned a collision with her car as part of an “unprecedented” provocation by Beijing in Europe. Czech Military Intelligence learned that their Chinese counterparts attempted to create conditions to carry out a demonstrative incident involving Hsiao, which “did not go beyond the preparation stage,” agency director Petr Bartovsky told Czech Radio in a report yesterday. In addition, a Chinese diplomat ran a red light to maintain surveillance of the Taiwanese
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