The US dollar pushed higher Friday, buoyed by news that the US economy beat expectations and expanded at an annual rate of 3.8 percent in the third quarter.
The euro fell to US$1.2068 at 9pm GMT after trading at US$1.2139 dollars late Thursday in New York. The US dollar edged up to ¥115.66 against ¥115.43 on Thursday.
The report on GDP in the world's biggest economy in the July-September period topped expectations of a 3.6 percent expansion, and showed acceleration from 3.3 percent in the previous quarter.
The report suggested the economy appears to have weathered the impact of hurricanes Katrina and Rita and a surge in energy costs.
"Ultimately, the rise in GDP shows that the US economy remains strong, despite two major hurricanes and continued interest rate increases," wrote analysts at Forex Capital Markets.
"Although the technical picture for the dollar is beginning to recede, the fundamental picture in the US remains kinder for the US currency on the basis of further Fed rate hikes, until the data begin to get the attention of the Treasury market," said Ashraf Laidi, chief currency analyst at MG Financial Group.
But the US growth report's details also convinced financial markets that the Fed would not turn more aggressive and may pause its rate-hike campaign next year.
It was the mildest rate for a core price increase since the second quarter of 2003.
The US dollar had been on shaky ground overseas with traders looking ahead to charges in an investigation of the role of some top White House aides over the leak of a CIA agent's identity.
US stocks firmed up their gains and the US dollar proved resolute after the charges were announced, largely because the indictment didn't as yet go beyond Libby, the chief of staff for Vice President Dick Cheney.
‘ACCORDING TO PLAN’: A company official said that it has set up production sites worldwide to provide services and that its Wisconsin project was going smoothly Hon Hai Precision Industry Co’s (鴻海精密) smart manufacturing center in Wisconsin would begin trial manufacturing in the middle of this year, the company said yesterday, adding that it plans to build a research institute to develop key technologies to support growth over the next five years. Hon Hai, known internationally as Foxconn Technology Group (富士康科技集團), said in an annual report submitted to the Taiwan Stock Exchange that its planned Foxconn Institute for Research in Science and Technology would conduct research into artificial intelligence, next-generation communications, quantum computing, cybersecurity and nano semiconductors in Taiwan. Hon Hai is to make products at the center
TV and online retailer Momo.com Inc (富邦媒體) yesterday said it has set up a new logistics subsidiary, Fu Sheng Logistics Co (富昇物流), to oversee the company’s extensive shipping operations. Leveraging Momo’s 23 satellite warehouses and distribution centers nationwide, Fu Sheng will be in charge of executing the retailer’s same-day shipment plan for deliveries in Taipei, New Taipei City, Taoyuan, Taichung, Tainan and Kaohsiung, Momo said in a press release. Seeking to further shorten its supply chain, the company is to set up another seven satellite warehouses and distribution centers by the end of the year. “Fu Sheng has a fleet of 200 couriers
US-CHINA TENSIONS: The company said that it supplies self-designed chips to the Chinese company and, as such, is not affected by the latest US export restrictions Macronix International Co (旺宏電子) said it does not expect its shipments of memory chips to Huawei Technologies Co (華為) to be affected by the latest US export restrictions on the Chinese tech giant. “As long as the company [Huawei] places orders, we will ship [chips], unless the [Taiwanese] government restricts all Taiwanese companies from shipping” to Huawei, Macronix chairman and chief executive officer Miin Wu (吳敏求) said on Monday in Hsinchu. The US Department of Commerce on Friday took a further step to block chip supplies from non-US companies to Huawei by requiring foreign semiconductor makers to get US government permission before
E Ink Holdings Inc (元太科技), the world’s sole supplier of e-paper displays for e-readers and shelf labels, posted its best quarterly net profit for the first quarter in nine years amid increased demand during a traditionally slow season. Net profit soared 80 percent to NT$787 million (US$26.23 million) in the quarter ended March 31, compared with NT$438 million a year earlier. That translated into earnings per share of NT$0.69, up from NT$0.39. E Ink posted lower royalty income of NT$371.23 million last quarter from NT$448.74 million a year earlier, a company financial statement showed. E Ink said that it expects royalty income to