The euro rose for the first time in three weeks against the US dollar and touched a two-week high after European leaders agreed to a new bailout for Greece and expanded the role of the region’s rescue fund.
The Swiss franc dropped this week against all of its 16 most-traded counterparts tracked by Bloomberg on reduced safety demand, as leaders agreed to guarantee Greek bonds in money market operations if a bailout agreement triggers a default. The US dollar pared its third weekly drop versus the yen before US House Speaker John Boehner withdrew late on Friday from negotiations with the White House on a broad deficit-reduction package.
“The net-positive performance on the euro is clearly linked to the outcome of the summit and the fact that we’ve seen a reversal in euro peripheral credit markets,” said Ray Attrill, a senior currency strategist at BNP Paribas SA in New York. “Everybody’s expectations in terms of the outcome of the summit were exceeded and it’s put the onus squarely back on US policymakers.”
The euro advanced 1.4 percent this week to US$1.4360, from US$1.4157 on July 15. The shared currency reached US$1.4439 on Friday, the highest level since July 6. The euro gained 0.7 percent to ¥112.77, from ¥112.02. The greenback depreciated 0.8 percent to ¥78.54, from ¥79.13.
Canada’s dollar pared its weekly gain versus the greenback after a government report showed yesterday that the inflation rate slowed last month more than economists forecast.
The loonie rallied to a three-year high on Thursday, two days after the Bank of Canada said borrowing costs would rise, omitting the word “eventually,” which had appeared in previous statements. The bank also raised its forecast for inflation.
The Canadian dollar gained 0.6 percent to US$0.948 versus the greenback after touching US$0.9423 on Thursday, the strongest level since November 2007.
The Swiss franc, regarded as a haven in times of financial turmoil, declined 1.9 percent to SF1.1762 against the euro after rallying on Monday to SF1.1374, the strongest level since the European’s currency’s 1999 debut.
IntercontinentalExchange Inc’s Dollar Index, which tracks the greenback against the currencies of six major US trading partners including the euro, yen and pound, dropped 1.2 percent to 74.245 after falling on Thursday to 73.889, the lowest level since June 9.
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
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
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
FACTORY SHIFT: While Taiwan produces most of the world’s AI servers, firms are under pressure to move manufacturing amid geopolitical tensions Lenovo Group Ltd (聯想) started building artificial intelligence (AI) servers in India’s south, the latest boon for the rapidly growing country’s push to become a high-tech powerhouse. The company yesterday said it has started making the large, powerful computers in Pondicherry, southeastern India, moving beyond products such as laptops and smartphones. The Chinese company would also build out its facilities in the Bangalore region, including a research lab with a focus on AI. Lenovo’s plans mark another win for Indian Prime Minister Narendra Modi, who tries to attract more technology investment into the country. While India’s tense relationship with China has suffered setbacks