The dollar rebounded on Friday as the market reconsidered the sharp selloff in the greenback in the wake of China's move to revalue its currency and reacted to fresh security incidents in London.
The dollar stood at ?111.36 at 9pm GMT after ?110.29 late Thursday in New York.
The euro meanwhile slipped to US$1.2061 against US$1.2169 on Thursday in New York.
The US currency found buyers after a steep sell-off that was linked to concerns about how the Chinese yuan revaluation might affect capital flows to the US and the bond market.
"It's basically an unwinding of the move that was quite drastic following the revaluation," said Ashraf Laidi, chief currency analyst at MG Financial Group.
"People knew that the revaluation was minor, albeit didn't want to sit and contemplate on how minor it was and instead, they just went in and sold dollars and bought yen," he said.
"Now there is a time before the weekend comes, people reassess the position and unwind some of those positions," he said.
Some analysts also noted the dollar rebounded as the market shifted back to concentrate on interest-rate differentials, which have largely supported the dollar rally so far this year.
"Interest rate aspect will continue to support the dollar as long as expectations in the market exist that the Fed will continue to tighten," Laidi said.
CALYON analyst Mitul Kotecha said he expected dollar strength against the euro to resume following the knee-jerk sell-off on Thursday, although losses against the yen were set to continue.
"We look for dollar strength to resume, with the notable exception of the yen, where we expect further appreciation in the months ahead," he said.
The move by the People's Bank of China was positive but the revaluation was limited, and speculation over further moves to increase the yuan's flexibility was likely to continue in the coming months, Kotecha said.
The Chinese central bank on Thursday announced a 2.1 percent revaluation in the yuan-dollar rate, with the Chinese currency set at 8.11 yuan to the US dollar from 8.2765 yuan previously.
It also said the decade-old, yuan-dollar peg would be replaced by a managed float against a basket of currencies.
Following the move, the central bank of Malaysia also announced a decision to remove the ringgit's peg to the dollar and to replace it with a managed float against a basket of trade-weighted currencies.
In late New York trade, the dollar stood at 1.2979 Swiss francs from SF1.2847 on Thursday.
The pound was being traded at US$1.7388 from US$1.7519 late on Thursday.
China has claimed a breakthrough in developing homegrown chipmaking equipment, an important step in overcoming US sanctions designed to thwart Beijing’s semiconductor goals. State-linked organizations are advised to use a new laser-based immersion lithography machine with a resolution of 65 nanometers or better, the Chinese Ministry of Industry and Information Technology (MIIT) said in an announcement this month. Although the note does not specify the supplier, the spec marks a significant step up from the previous most advanced indigenous equipment — developed by Shanghai Micro Electronics Equipment Group Co (SMEE, 上海微電子) — which stood at about 90 nanometers. MIIT’s claimed advances last
ISSUES: Gogoro has been struggling with ballooning losses and was recently embroiled in alleged subsidy fraud, using Chinese-made components instead of locally made parts Gogoro Inc (睿能創意), the nation’s biggest electric scooter maker, yesterday said that its chairman and CEO Horace Luke (陸學森) has resigned amid chronic losses and probes into the company’s alleged involvement in subsidy fraud. The board of directors nominated Reuntex Group (潤泰集團) general counsel Tamon Tseng (曾夢達) as the company’s new chairman, Gogoro said in a statement. Ruentex is Gogoro’s biggest stakeholder. Gogoro Taiwan general manager Henry Chiang (姜家煒) is to serve as acting CEO during the interim period, the statement said. Luke’s departure came as a bombshell yesterday. As a company founder, he has played a key role in pushing for the
EUROPE ON HOLD: Among a flurry of announcements, Intel said it would postpone new factories in Germany and Poland, but remains committed to its US expansion Intel Corp chief executive officer Pat Gelsinger has landed Amazon.com Inc’s Amazon Web Services (AWS) as a customer for the company’s manufacturing business, potentially bringing work to new plants under construction in the US and boosting his efforts to turn around the embattled chipmaker. Intel and AWS are to coinvest in a custom semiconductor for artificial intelligence computing — what is known as a fabric chip — in a “multiyear, multibillion-dollar framework,” Intel said in a statement on Monday. The work would rely on Intel’s 18A process, an advanced chipmaking technology. Intel shares rose more than 8 percent in late trading after the
Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) has appointed Rose Castanares, executive vice president of TSMC Arizona, as president of the subsidiary, which is responsible for carrying out massive investments by the Taiwanese tech giant in the US state, the company said in a statement yesterday. Castanares will succeed Brian Harrison as president of the Arizona subsidiary on Oct. 1 after the incumbent president steps down from the position with a transfer to the Arizona CEO office to serve as an advisor to TSMC Arizona’s chairman, the statement said. According to TSMC, Harrison is scheduled to retire on Dec. 31. Castanares joined TSMC in