Asian currencies rose this week, led by the Thai baht and South Korea’s won, as the world’s fastest economic growth drew funds to the region and data in the US, China and Japan brightened the outlook for exports.
The Bloomberg-JPMorgan Asia Dollar Index climbed to a four-month high as equities in India, Indonesia, South Korea, Taiwan and Thailand attracted more than US$1 billion from abroad. US jobless claims were the lowest in two months, China’s imports rose more than economists forecast and Japan raised its estimate for second-quarter economic growth, reports showed this week. The baht and Malaysia’s ringgit reached 13-year highs.
The baht appreciated 1.2 percent this week to 30.83 per US dollar as of 3:22pm in Bangkok on Friday, according to data compiled by Bloomberg. The won rose 0.8 percent to 1,165.85 on Friday, touching a one-month high of 1,159.98. The yuan climbed 0.5 percent to 6.7650.
The New Taiwan dollar had its best week in a month as economic data from the world’s three biggest economies brightened the outlook for exports.
The currency gained for a third day as exchange data showed global funds bought US$503 million more local shares than they sold this week.
“Risk appetite has come back this week as concerns about the global economic recovery have eased a bit,” said Tarsicio Tong (湯健揚), a currency trader at Union Bank of Taiwan (聯邦銀行) in Taipei.
The NT dollar gained 0.3 percent this week, the most since the five-day period ended Aug. 6, to NT$31.91 against its US counterpart as of the 4pm close, according to Taipei Forex Inc. The currency gained 0.1 percent from Thursday.
Elsewhere in Asia, the ringgit strengthened 0.4 percent to 3.1065 per US dollar this week and Indonesia’s rupiah gained 0.4 percent to 8,963. The Philippine peso jumped 1.3 percent to 44.11, India’s rupee gained 0.4 percent to 46.47 and Singapore’s dollar rose 0.4 percent to S$1.3415. Financial markets were shut in all five countries on Friday for holidays.
PLA MANEUVERS: Although Beijing has yet to formally announce military drills, its coast guard vessels have been spotted near and around Taiwan since Friday The Taiwanese military is on high alert and is closely monitoring the Chinese People’s Liberation Army’s (PLA) air and naval deployments after Beijing yesterday reserved seven airspace areas east of its Zhejiang and Fujian provinces through Wednesday. Beijing’s action was perceived as a precursor to a potential third “Joint Sword” military exercise, which national security experts said the PLA could launch following President William Lai’s (賴清德) state visits to the nation’s three Pacific allies and stopovers in Hawaii and Guam last week. Unlike the Joint Sword military exercises in May and October, when Beijing provided detailed information about the affected areas, it
CHINA: The activities come amid speculation that Beijing might launch military exercises in response to Lai’s recent visit to Pacific allies The Ministry of National Defense (MND) yesterday said China had nearly doubled the number of its warships operating around the nation in the previous 24 hours, ahead of what security sources expect would be a new round of war games. China’s military activities come amid speculation Beijing might organize military drills around the nation in response to President William Lai’s (賴清德) recent visit to Pacific allies, including stops in Hawaii and Guam, a US territory. Lai returned from the week-long trip on Friday night. Beijing has held two rounds of war games around Taiwan this year, and sends ships and military planes
Five flights have been arranged to help nearly 2,000 Taiwanese tourists return home from Okinawa after being stranded due to cruise ship maintenance issues, the Ministry of Transportation and Communications announced yesterday. China Airlines Ltd (中華航空), and EVA Airways Corp (長榮航空) have arranged five flights with a total of 748 additional seats to transport 1,857 passengers from the MSC Bellissima back to Taiwan, the ministry said. The flights have been scheduled for yesterday and today by the Civil Aviation Administration, with the cruise operator covering all associated costs. The MSC Bellissima, carrying 4,341 passengers, departed from Keelung on Wednesday last week for Okinawa,
US president-elect Donald Trump said he would “never say” if Washington is committed to defending Taiwan from China, but “I would prefer that they do not do it [ an attack],” adding that he has a “good relationship” with Chinese President Xi Jinping (習近平). “I never say because I have to negotiate things, right?” Trump said in an interview with NBC’s Meet the Press host Kristen Welker after saying he would not reveal his incoming administration’s stance on Taiwan’s defense in the event of an attack. Asked the question again, Trump, in a reference to China, said: “I would prefer that they
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