The US dollar edged higher on Friday to post a weekly gain, supported by upbeat retail sales data boosting expectations that economic growth accelerated in the second quarter.
The US dollar index, which tracks the greenback versus a basket of six currencies, rose 0.1 percent to 92.71, up 0.63 percent from a week earlier — its biggest weekly rise in about a month.
US retail sales unexpectedly increased last month as demand for goods remained healthy even as spending was shifting back to services.
Photo: Reuters
Solid US data and a shift in interest rate expectations after the US Federal Reserve last month flagged sooner-than-expected hikes in 2023 have helped lift the US dollar in the past few weeks and made investors nervous about shorting it.
Friday’s gains for the greenback came despite Fed Chairman Jerome Powell on Thursday reiterating that rising inflation was likely to be transitory and that the US central bank would continue to support the economy.
“The data was consistent with the economy making substantial strides and cements expectations of very robust second quarter growth of around 10 percent,” said Joe Manimbo, a senior market analyst at Western Union Business Solutions in Washington.
“A backdrop of rising inflation, falling unemployment and a resilient consumer makes a compelling case for the Fed to unwind stimulus,” Manimbo said.
In Taipei, the New Taiwan dollar dropped against the US dollar on Friday, losing NT$0.113 to close at NT$28.005, but gained 0.29 percent from a week earlier. Turnover totaled US$1.208 billion during the trading session.
The New Zealand dollar gained 0.37 percent after data showed that New Zealand’s consumer prices rose far faster than expected, prompting some in the market to bet on a rate hike as soon as next month.
Sterling edged lower against the US dollar as investors sought safety in the greenback amid concerns over rising COVID-19 cases globally.
The Canadian dollar climbed 0.1 percent, helped by upbeat domestic wholesale trade data, a day after touching a near three-month low against its US counterpart.
Cryptocurrencies found support after recent turbulence, with bitcoin about flat on the day at US$31,835.59.
Additional reporting by CNA, with staff writer
Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) yesterday said that its investment plan in Arizona is going according to schedule, following a local media report claiming that the company is planning to break ground on its third wafer fab in the US in June. In a statement, TSMC said it does not comment on market speculation, but that its investments in Arizona are proceeding well. TSMC is investing more than US$65 billion in Arizona to build three advanced wafer fabs. The first one has started production using the 4-nanometer (nm) process, while the second one would start mass production using the
A TAIWAN DEAL: TSMC is in early talks to fully operate Intel’s US semiconductor factories in a deal first raised by Trump officials, but Intel’s interest is uncertain Broadcom Inc has had informal talks with its advisers about making a bid for Intel Corp’s chip-design and marketing business, the Wall Street Journal reported, citing people familiar with the matter. Nothing has been submitted to Intel and Broadcom could decide not to pursue a deal, according to the Journal. Bloomberg News earlier reported that Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) is in early talks for a controlling stake in Intel’s factories at the request of officials at US President Donald Trump’s administration, as the president looks to boost US manufacturing and maintain the country’s leadership in critical technologies. Trump officials raised the
‘SILVER LINING’: Although the news caused TSMC to fall on the local market, an analyst said that as tariffs are not set to go into effect until April, there is still time for negotiations US President Donald Trump on Tuesday said that he would likely impose tariffs on semiconductor, automobile and pharmaceutical imports of about 25 percent, with an announcement coming as soon as April 2 in a move that would represent a dramatic widening of the US leader’s trade war. “I probably will tell you that on April 2, but it’ll be in the neighborhood of 25 percent,” Trump told reporters at his Mar-a-Lago club when asked about his plan for auto tariffs. Asked about similar levies on pharmaceutical drugs and semiconductors, the president said that “it’ll be 25 percent and higher, and it’ll
CHIP BOOM: Revenue for the semiconductor industry is set to reach US$1 trillion by 2032, opening up opportunities for the chip pacakging and testing company, it said ASE Technology Holding Co (日月光投控), the world’s largest provider of outsourced semiconductor assembly and test (OSAT) services, yesterday launched a new advanced manufacturing facility in Penang, Malaysia, aiming to meet growing demand for emerging technologies such as generative artificial intelligence (AI) applications. The US$300 million facility is a critical step in expanding ASE’s global footprint, offering an alternative for customers from the US, Europe, Japan, South Korea and China to assemble and test chips outside of Taiwan amid efforts to diversify supply chains. The plant, the company’s fifth in Malaysia, is part of a strategic expansion plan that would more than triple
RSS