The euro rallied against the US dollar for the first time in eight months as concern eased that the 16-nation region’s sovereign-debt crisis will worsen and spread to the global economy.
The US dollar dropped last month against all of its most-traded counterparts before next week’s payrolls report as US Federal Reserve Chairman Ben Bernanke testified last week that “the economic outlook remains unusually uncertain.”
The greenback on Friday slid below ¥86 for the first time this year as a report showed US economic growth slowed in the second quarter.
“European data has been surprisingly robust, while all signs are that the US is heading for slower growth in the second half,” said Vassili Serebriakov, a currency strategist at Wells Fargo & Co in New York. “There have been some hints from Fed policy makers that further easing could be on the table should the economy deteriorate.”
The euro climbed 6.7 percent to US$1.3052 on Friday, from US$1.2238 on June 30, in its first monthly advance since November, when it increased 1.9 percent. The euro rallied 10 percent from a four-year low of US$1.1877 reached on June 7. The euro gained 4.3 percent to ¥112.84, from ¥108.22. The US dollar slid 2.2 percent to ¥86.47, from ¥88.43, in its third monthly decline.
The pound gained for a third consecutive week, strengthening 1.7 percent to US$1.5696.
Sterling was at £0.8309 per euro, from £0.8372 on July 23.
Asian currencies strengthened this week, led by the Philippine peso and Indonesia’s rupiah, as the fastest economic growth in the world and relatively high interest rates attracted funds to the region.
The New Taiwan dollar, peso and rupiah advanced on each of the last five days and the MSCI Asia-Pacific Index of shares had a fourth weekly gain.
The NT dollar rose for a sixth day on Friday, its longest winning streak in more than a month, after Taiwan’s biggest listed company, Taiwan Semiconductor Manufacturing Co (TSMC, 台積電), reported record earnings and foreigners added to their holdings of Taiwanese shares.
The NT dollar rose 0.1 percent to close at NT$32.05 against its US counterpart on Friday, according to Taipei Forex Inc. It touched a five-week high of NT$31.85 on Thursday as global funds bought more Taiwanese shares than they sold, as they have on all but one day in the last two weeks. The currency appreciated 0.3 percent this week and 0.7 percent this month.
The peso strengthened 1.7 percent this week to 45.525 per US dollar at the 4pm close in Manila. Indonesia’s rupiah appreciated 1 percent to 8,955, earlier touching a three-year high of 8,933. South Korea’s won climbed 1.4 percent to 1,182.75 and the Indian rupee rose 1 percent to 46.49.
Thailand’s baht slipped 0.1 percent to 32.25 per US dollar this week. Malaysia’s ringgit rose 0.5 percent to 3.1823 and China’s yuan gained 0.1 percent to 6.7735.
The navy has installed 13 Phalanx Block 1B close-in weapons systems on its warships, increasing their defensive firepower, a defense official said on Saturday. The systems cost the navy NT$10.16 billion (US$314.67 million), while eight additional Block 1A systems are being upgraded in the US and are expected to be delivered next year, the official said, speaking on condition of anonymity. The Phalanx system used by Taiwan to defend its warships and key radar installations is a radar-cued gun system capable of firing 4,500 rounds a minute at targets as far away as 1.5km, the official said. With their superior range of
RACE FOR CHIPS: The Dresden site would help Europe reduce its reliance on Asia for semiconductors, while Germany aims to produce one-fifth of the world’s chips by 2030 Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) yesterday broke ground in Dresden, Germany, on its first European plant as the continent seeks to safeguard its chip supplies amid growing US-China tensions. TSMC chief executive C.C. Wei (魏哲家) attended the event, together with European Commission President Ursula von der Leyen, German Chancellor Olaf Scholz, and the heads of Infineon Technologies AG, NXP Semiconductors NV and Robert Bosch GmbH, which each hold a 10 percent stake in the venture. TSMC owns a 70 percent stake in the plant. “Together with our partners, Bosch, Infineon and NXP, we are building our Dresden facility to meet the
RECOVERY: Overall, average income across all age groups increased, climbing to a record NT$709,000 last year, on the back of an improved economy, the DGBAS said Taiwanese workers under the age of 30 last year, on average, earned an annual income of NT$545,931 (US$17,044), a new high, as the economy continued to improve, data released by the Directorate-General of Budget, Accounting and Statistics (DGBAS) showed. That equated to monthly earnings of NT$45,494 per person, and marked an increase from NT$535,667 in 2022, the data showed. In addition to an improved economy, average incomes rose as the unemployment rate declined and the minimum wage rose, the statistics agency said. Overall, average income in Taiwan also hit a new record of NT$709,000 last year, up from NT$704,000 in 2022, the data
‘CLOSE TIES’: Former Japanese PM Yoshihiko Noda also attended the annual Ketagalan Forum on Indo-Pacific security and spoke of Taiwan’s importance globally China’s authoritarian expansionism would not stop with Taiwan, President William Lai (賴清德) said yesterday, calling for solidarity among the world’s democracies to check Beijing’s territorial ambitions. Taiwan is determined to become a decisive force for democracy, peace and prosperity, standing side-by-side with its democratic partners to confront authoritarian expansionism and protect shared values, he told the annual Ketagalan Forum on Indo-Pacific security in Taipei. Authoritarianism is now a global challenge, Lai said, using as examples Chinese military expansionism, economic coercion and the use of hybrid warfare tactics such as cyberattacks and cognitive warfare. “We are all fully aware that China’s growing authoritarianism will