The yen chalked up heavy gains on Friday across the board, extending a week of gains on the back of heightened speculation about a possible revaluation of the Chinese yuan.
The US dollar and particularly the euro were sharply lower versus the Japanese and other Asian currencies, most of which which are seen as potential beneficiaries of any move by China to let its currency appreciate. The yen also benefited from a drop in crude price below US$50 per barrel in the New York afternoon.
The dollar fell to a five-and-a-half week low versus the yen, falling 1.1 percent from late Thursday. The euro plummeted to an 11-week low against the yen, dropping 1.3 percent over the session.
The dollar, which had fallen back earlier in the session, was actually higher versus the euro late in the New York afternoon. The huge drops in the euro-yen exchange rate aided the dollar against the single currency, as did rising US equities and longer-term Treasury yields.
In late New York trading, the dollar was at ¥104.79, from ¥105.98 late Thursday, while the euro fell to ¥134.89, from ¥136.73 late Thursday. The euro has now lost 4 percent versus the yen since Thursday of last week.
The euro was at US$1.2869 from US$1.2894. Versus the Swiss franc, the dollar was at SF1.1951 from SF1.1930, while the pound was at US$1.9074 from US$1.9064.
The talk about a yuan revaluation reached a fevered pitch in the Asian session. A front-page article in Friday's China Securities Journal, a state-owned financial daily, suggested the time was "ripe" for further currency reform, citing unnamed analysts.
However, it was a sudden dip in the dollar's value that spurred speculative activity. After trading in a tiny range of 8.2763 yuan to 8.2765 yuan for most of this year, the US dollar briefly tumbled to a low of 8.2700 against the yuan during the early afternoon in Shanghai's spot market on Friday -- roughly a three-year low.
Within minutes, a fresh wave of revaluation speculation surged around Asian markets. The dollar remained lower even though the dollar/yuan rate quickly bounced back to a normal level and China's central bank said it had no plan to announce any policy change.
With this year’s Semicon Taiwan trade show set to kick off on Wednesday, market attention has turned to the mass production of advanced packaging technologies and capacity expansion in Taiwan and the US. With traditional scaling reaching physical limits, heterogeneous integration and packaging technologies have emerged as key solutions. Surging demand for artificial intelligence (AI), high-performance computing (HPC) and high-bandwidth memory (HBM) chips has put technologies such as chip-on-wafer-on-substrate (CoWoS), integrated fan-out (InFO), system on integrated chips (SoIC), 3D IC and fan-out panel-level packaging (FOPLP) at the center of semiconductor innovation, making them a major focus at this year’s trade show, according
DEBUT: The trade show is to feature 17 national pavilions, a new high for the event, including from Canada, Costa Rica, Lithuania, Sweden and Vietnam for the first time The Semicon Taiwan trade show, which opens on Wednesday, is expected to see a new high in the number of exhibitors and visitors from around the world, said its organizer, SEMI, which has described the annual event as the “Olympics of the semiconductor industry.” SEMI, which represents companies in the electronics manufacturing and design supply chain, and touts the annual exhibition as the most influential semiconductor trade show in the world, said more than 1,200 enterprises from 56 countries are to showcase their innovations across more than 4,100 booths, and that the event could attract 100,000 visitors. This year’s event features 17
SEMICONDUCTOR SERVICES: A company executive said that Taiwanese firms must think about how to participate in global supply chains and lift their competitiveness Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) yesterday said it expects to launch its first multifunctional service center in Pingtung County in the middle of 2027, in a bid to foster a resilient high-tech facility construction ecosystem. TSMC broached the idea of creating a center two or three years ago when it started building new manufacturing capacity in the US and Japan, the company said. The center, dubbed an “ecosystem park,” would assist local manufacturing facility construction partners to upgrade their capabilities and secure more deals from other global chipmakers such as Intel Corp, Micron Technology Inc and Infineon Technologies AG, TSMC said. It
EXPORT GROWTH: The AI boom has shortened chip cycles to just one year, putting pressure on chipmakers to accelerate development and expand packaging capacity Developing a localized supply chain for advanced packaging equipment is critical for keeping pace with customers’ increasingly shrinking time-to-market cycles for new artificial intelligence (AI) chips, Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) said yesterday. Spurred on by the AI revolution, customers are accelerating product upgrades to nearly every year, compared with the two to three-year development cadence in the past, TSMC vice president of advanced packaging technology and service Jun He (何軍) said at a 3D IC Global Summit organized by SEMI in Taipei. These shortened cycles put heavy pressure on chipmakers, as the entire process — from chip design to mass
RSS