The US dollar posted its biggest five-day gain versus the yen in two weeks as fewer Americans lost jobs last month than economists forecast, increasing the likelihood that the US economic recovery remains on track.
The euro gained against the Japan’s currency as Greece’s prime minister prepares to meet with leaders in Paris and Washington to discuss resolving its debt crisis. The yen fell versus South Africa’s rand and Canada’s dollar after the US employment report spurred demand for riskier assets.
“The payrolls number was big from a psychological point of view,” said Sebastien Galy, a currency strategist at BNP Paribas SA in New York. “It’s the end of the double dip scenarios. ”
The US dollar rose 1.5 percent this week to ¥90.28, from ¥88.97 on Feb. 26. The euro traded at US$1.3626, compared with US$1.3631, and gained 1.7 percent to ¥123, from ¥121.26.
Japan’s currency this week fell 5.7 percent, the biggest drop since the five days ended April 3, to 12.1812 per rand. Against Canada’s dollar the yen fell 3.8 percent, the biggest decline since the five days ended Dec. 4.
The euro gained 1.4 percent against the yen this week as Greece’s parliament on Friday gave final approval to the government’s 4.8 billion euros (US$6.5 billion) of additional cuts to the EU’s biggest budget deficit.
The pound tumbled to a 10-month low against the US dollar after opinion polls showed the UK may elect its first minority government since 1974, hampering efforts to curb the nation’s record budget deficit.
The pound fell 0.8 percent against the US dollar in the week to reach US$1.5113 as of 5:30pm in London on Friday. It slid to US$1.4784 on Monday, the lowest level since May 1. It weakened 0.6 percent to £0.8996 per euro.
Asian currencies advanced this week, led by South Korea’s won and Thailand’s baht, as Greece took steps to cut its budget deficit and signs regional central banks will gradually raise interest rates prompted investors to buy higher-yielding assets.
The won climbed 1.7 percent from the end of last week to 1,140.3 per US dollar as of the 3pm close in Seoul, the strongest level since Jan. 21, according to data compiled by Bloomberg. Thailand’s baht rose 1.2 percent to 32.64 and Malaysia’s ringgit climbed 1.1 percent to 3.3635.
The New Taiwan dollar fell 0.1 percent on Friday to NT$32.02 against the greenback as of the 4pm close, reversing an earlier advance of as much as 0.3 percent, according to Taipei Forex Inc.
The NT dollar climbed 0.2 percent for the week.
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
COORDINATION, ASSURANCE: Separately, representatives reintroduced a bill that asks the state department to review guidelines on how the US engages with Taiwan US senators on Tuesday introduced the Taiwan travel and tourism coordination act, which they said would bolster bilateral travel and cooperation. The bill, proposed by US senators Marsha Blackburn and Brian Schatz, seeks to establish “robust security screenings for those traveling to the US from Asia, open new markets for American industry, and strengthen the economic partnership between the US and Taiwan,” they said in a statement. “Travel and tourism play a crucial role in a nation’s economic security,” but Taiwan faces “pressure and coercion from the Chinese Communist Party [CCP]” in this sector, the statement said. As Taiwan is a “vital trading
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