The US dollar and yen fell against most of their major counterparts after data showing growth in economies from China to the US boosted demand for higher-yielding assets.
“We’ve certainly seen rays of sunshine as far as risk sentiment is concerned,” said Vassili Serebriakov, a currency strategist at Wells Fargo & Co in New York. “You get a sense that growth in Asia is slowing from very strong levels, but remains firm, and the US growth is very modest, but the economy should be steering clear of a double-dip recession.”
The US dollar fell 1.1 percent to ¥84.31 on Friday, from ¥85.22 on Aug. 27, in its third straight weekly drop, the longest slide in two months. The greenback weakened 1 percent to US$1.2896 per euro.
The yen was little changed versus the euro after rising in each of the previous three weeks.
The euro rose for a fourth day against the US dollar on Friday, the longest winning streak in five weeks.
The yen gained versus the dollar this week amid speculation that moves to increase credit-easing measures in Japan won’t curb the currency’s surge. It has gained 14 percent this year, the most among 10 developed-world counterparts, as investors sought it as a haven, Bloomberg Correlation-Weighted Currency Indices show. It touched a 15-year high, ¥83.60 per US dollar, on Aug. 24. A strong currency hurts Japanese exporters’ competitiveness.
The pound fell for a fourth week against the dollar, the longest run of losses since June, as reports showing that UK services grew at a slower pace and house prices dropped fueled concern the recovery will falter.
The pound was at US$1.5445 as of 5:15pm in London on Friday. It fell to US$1.5327 on Tuesday, the lowest level since July 23. The pound was at £0.8341 per euro, leaving it 1.5 percent weaker since Aug. 27.
The currency may extend losses before the central bank’s interest rates decision in the week ahead.
The Bank of England will keep its benchmark interest rate at a record low 0.5 percent and maintain its asset purchases at £200 billion on Thursday, according to economists surveyed by Bloomberg.
“Sterling continues to feel the heat from weaker UK numbers this week,” said Paul Robson, a senior foreign-exchange strategist at Royal Bank of Scotland Group PLC in London.
Tropical Storm Usagi strengthened to a typhoon yesterday morning and remains on track to brush past southeastern Taiwan from tomorrow to Sunday, the Central Weather Administration (CWA) said yesterday. As of 2pm yesterday, the storm was approximately 950km east-southeast of Oluanpi (鵝鑾鼻), Taiwan proper’s southernmost point, the CWA said. It is expected to enter the Bashi Channel and then turn north, moving into waters southeast of Taiwan, it said. The agency said it could issue a sea warning in the early hours of today and a land warning in the afternoon. As of 2pm yesterday, the storm was moving at
UPDATED FORECAST: The warning covered areas of Pingtung County and Hengchun Peninsula, while a sea warning covering the southern Taiwan Strait was amended The Central Weather Administration (CWA) at 5:30pm yesterday issued a land warning for Typhoon Usagi as the storm approached Taiwan from the south after passing over the Philippines. As of 5pm, Usagi was 420km south-southeast of Oluanpi (鵝鑾鼻), Taiwan proper’s southernmost tip, with an average radius of 150km, the CWA said. The land warning covered areas of Pingtung County and the Hengchun Peninsula (恆春), and came with an amended sea warning, updating a warning issued yesterday morning to cover the southern part of the Taiwan Strait. No local governments had announced any class or office closures as of press time last night. The typhoon
At least 35 people were killed and dozens more injured when a man plowed his car into pedestrians exercising around a sports center in the southern Chinese city of Zhuhai on Monday night. Footage showing bodies lying on the pavement appeared on social media in the hours after the crash, but had vanished by early Tuesday morning, and local police reported only “injuries.” It took officials nearly 24 hours to reveal that dozens had died — in one of the country’s deadliest incidents in years. China heavily monitors social media platforms, where it is common for words and topics deemed
Typhoon Usagi yesterday had weakened into a tropical storm, but a land warning issued by the Central Weather Administration (CWA) was still in effect in four areas in southern Taiwan. As of 5pm yesterday, Tropical Storm Usagi was over waters 120km south-southwest of Oluanpi (鵝鑾鼻), the southernmost tip of Taiwan proper, and was moving north at 9kph, CWA data showed. The storm was expected to veer northeast later yesterday. It had maximum sustained winds of 101kph, with gusts of up to 126kph, the data showed. The CWA urged residents of Kaohsiung, Pingtung County, Taitung County and the Hengchun Peninsula (恆春) to remain alert to
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