The New Taiwan dollar on Friday rose against the US dollar, gaining NT$0.070 to close at NT$30.236, an increase of 0.2 percent from NT$30.302 a week earlier.
Turnover totaled US$987 million during the trading session.
The greenback opened at the day’s high of NT$30.250 and moved to a low of NT$30.170 before rebounding.
Elsewhere on Friday, the US dollar edged higher, but remained on track for its biggest weekly decline in four years, as trillions of US dollars of stimulus efforts by governments and central banks amid the COVID-19 pandemic helped temper a rout in global markets.
The US dollar has this month surged amid a drive for US dollars by investors trying to get their hands on the world’s most liquid currency.
However, big government spending pledges, including a US$2.2 trillion US package, and coordinated efforts by central banks worldwide to increase the supply of US dollars have supported a rally in other major currencies.
An unprecedented jump in US jobless claims on Thursday underscored the coronavirus’ effects on the economy, further weakening the US dollar.
The greenback on Friday gained 0.49 percent against a basket of currencies. It was on course for an about 2.57 percent fall for the week — its biggest weekly decline since February 2016.
Currency markets have been volatile. Last week, the US dollar index racked up its biggest weekly gain since the 2008 financial crisis.
“What we are seeing is abating stress in the money markets. Action by central banks has been successful so far and a shortage of [US] dollars has been taken of the table,” Commerzbank AG head of foreign exchange and commodity research Ulrich Leuchtmann said.
After this month’s large price swings, investors are likely to be especially active in rebalancing their books for month and quarter-end.
The Global Foreign Exchange Committee on Thursday warned that the coming few sessions could be volatile, as market participants execute larger-than-normal trades as part of this process.
Against the yen, the US dollar on Friday fell 0.71 percent to ￥108.80, as Japanese investors and companies repatriated funds before their fiscal year ends next week.
The euro fell 0.66 percent against the greenback to US$1.0955.
“Now that the surge in demand for [US] dollars overseas has been met by the Fed’s new improved swap lines, economic and medical fundamentals are taking over,” BDSwiss Group head of investment research Marshall Gittler said in a note.
TAKING STOCK: A Taiwanese cookware firm in Vietnam urged customers to assess inventory or place orders early so shipments can reach the US while tariffs are paused Taiwanese businesses in Vietnam are exploring alternatives after the White House imposed a 46 percent import duty on Vietnamese goods, following US President Donald Trump’s announcement of “reciprocal” tariffs on the US’ trading partners. Lo Shih-liang (羅世良), chairman of Brico Industry Co (裕茂工業), a Taiwanese company that manufactures cast iron cookware and stove components in Vietnam, said that more than 40 percent of his business was tied to the US market, describing the constant US policy shifts as an emotional roller coaster. “I work during the day and stay up all night watching the news. I’ve been following US news until 3am
UNCERTAINTY: Innolux activated a stringent supply chain management mechanism, as it did during the COVID-19 pandemic, to ensure optimal inventory levels for customers Flat-panel display makers AUO Corp (友達) and Innolux Corp (群創) yesterday said that about 12 to 20 percent of their display business is at risk of potential US tariffs and that they would relocate production or shipment destinations to mitigate the levies’ effects. US tariffs would have a direct impact of US$200 million on AUO’s revenue, company chairman Paul Peng (彭雙浪) told reporters on the sidelines of the Touch Taiwan trade show in Taipei yesterday. That would make up about 12 percent of the company’s overall revenue. To cope with the tariff uncertainty, AUO plans to allocate its production to manufacturing facilities in
Six years ago, LVMH’s billionaire CEO Bernard Arnault and US President Donald Trump cut the blue ribbon on a factory in rural Texas that would make designer handbags for Louis Vuitton, one of the world’s best-known luxury brands. However, since the high-profile opening, the factory has faced a host of problems limiting production, 11 former Louis Vuitton employees said. The site has consistently ranked among the worst-performing for Louis Vuitton globally, “significantly” underperforming other facilities, said three former Louis Vuitton workers and a senior industry source, who cited internal rankings shared with staff. The plant’s problems — which have not
COLLABORATION: Given Taiwan’s key position in global supply chains, the US firm is discussing strategies with local partners and clients to deal with global uncertainties Advanced Micro Devices Inc (AMD) yesterday said it is meeting with local ecosystem partners, including Taiwan Semiconductor Manufacturing Co (TSMC, 台積電), to discuss strategies, including long-term manufacturing, to navigate uncertainties such as US tariffs, as Taiwan occupies an important position in global supply chains. AMD chief executive officer Lisa Su (蘇姿丰) told reporters that Taiwan is an important part of the chip designer’s ecosystem and she is discussing with partners and customers in Taiwan to forge strong collaborations on different areas during this critical period. AMD has just become the first artificial-intelligence (AI) server chip customer of TSMC to utilize its advanced
RSS