The dollar fell back on Friday against most major currencies despite a stronger-than-expected report from the Treasury Department on US capital flows.
The dollar's retreat eliminated the gains which had taken the US currency to a two-month high versus the euro on Thursday.
Overall, the dollar has been floating up and down in a fairly narrow range versus the euro and the yen since the start of last week. Friday's move meant the dollar closed lower versus the euro from seven days earlier for the first time in five weeks.
Late afternoon, the euro was at US$1.2922 from US$1.2817 late Thursday. The dollar was at ?107.76 from ?108.11 and at 1.1999 Swiss francs from SF1.2155.
The pound was at US$1.8919 from US$1.8812 and the euro was at ?139.29 from ?138.56.
The dollar's retreat came as the International Monetary Fund/World Bank spring meeting got underway in Washington. Senior officials from the Group of Seven industrialized nations sat down for discussions over the weekend.
In comments on Friday, US Treasury Secretary John Snow upped the pressure on China over its effective dollar peg.
Snow said the two sides have been in discussions for the best part of two years on the currency issue and that China had said it needed time to shore up its financial system before it made changes.
"They are there now. They have made enormous strides in fixing their financial infrastructure ... It's time for the Chinese to move to a flexible currency," he said.
Snow's comments follow similar remarks on Thursday from US President George W. Bush. China is not sending its top officials to the G-7 meeting, in what some in the market have described as a sign of its dislike of being pressed on the currency issue.
The dollar initially rose during the overnight session, lifting toward the two-month high against the euro it tapped Thursday. Asian equities and a below forecast Japanese consumer confidence reading helped the US currency. The data was just the latest in a long series of weak Japanese numbers.
The US dollar was trading at C$1.2466 late in New York from C$1.2420 late a day ago.
NOTABLE SHIFT: By 2030, 50% of all laptops would be assembled in Southeast Asia, while Taiwan would still mostly focus on research and development, a report said Global laptop and desktop computer supply chains are expected to shift significantly away from China in the next 10 years, a Market Intelligence & Consulting Institute (MIC, 產業情報研究所) report said. By 2030, only 40 percent of global laptop production would remain in China, said the report, which was released on Thursday. “The reshuffling of the global supply chain will be one of the most important trends in the next 10 years,” the institute said in the report. “In the long run, key component makers will follow laptop assemblers in moving out of China.” The Taipei-based institute predicted most key component makers
Merck Group Taiwan yesterday said that it plans to invest substantially on expanding its fab in Kaohsiung’s Lujhu District (路竹) to better serve its local customers, including Taiwan Semiconductor Manufacturing Co (TSMC, 台積電). The company said it plans to expand its production space by 50 percent in the next five years and its workforce by about 40 percent, Merck Group Taiwan managing director Dick Hsieh (謝志宏) told a media briefing in Taipei. Hsieh declined to disclose investment details, but said that the latest investment would exceed the total amount Merck has invested in Taiwan over the past few years. Those investments would be
Yageo Corp (國巨), the world’s third-largest supplier of multilayer ceramic capacitors, has formed a strategic alliance with Hon Hai Precision Industry Co (鴻海精密) to develop key electronic components for electric vehicles and digital healthcare, it said yesterday. The alliance is to help Yageo boost its revenue from high-end components for vehicles and industrial, medical and aerospace devices, as well as those used in 5G and Internet-of-Things devices, the company said. The companies signed the strategic alliance agreement at Yageo’s headquarters in New Taipei City’s Sindian District (新店). Their cooperation is to start this quarter, the companies said in a joint statement. “Through the cooperation
INVEST IN TAIWAN: A metal components casting firm and the world’s largest maker of aluminum bicycle rims also obtained approvals to join the program Solar Applied Materials Technology Co (SOLAR, 光洋應用材料), a part of Taiwan Semiconductor Manufacturing Co’s (TSMC, 台積電) “green supply chain,” has pledged to invest NT$1 billion (US$34.1 million) to build a new plant at the Tainan Technology Industrial Park (台南科技工業區), the Ministry of Economic Affairs said yesterday. SOLAR has been collaborating with TSMC to extract precious metals from waste and reuse them as “sputtering target” material in high-end semiconductor manufacturing, a TSMC press release issued in May said. Established in 1978, SOLAR also offers key materials and integrated services to customers in the optoelectronics, information and communications technology, petrochemicals and consumer electronics industries,