Asian currencies ended a four-week advance as US economic data fueled speculation the US Federal Reserve would taper its stimulus sooner than economists expected.
The Bloomberg-JPMorgan Asia Dollar Index slumped by the most in more than two months as China’s yuan had its worst five-day drop in more than a year. Malaysia’s ringgit, Thailand’s baht and the Philippine peso fell by the most in a month, and India’s rupee posted a third weekly decline.
The New Taiwan dollar slipped 0.1 percent against the US dollar for the week to NT$29.47, as the central bank intervened to prevent its currency from gaining beyond NT$29.40, the Chinese-language Economic Daily News reported on Friday, citing unnamed traders.
Global funds pulled money out of equities in Indonesia, Thailand and the Philippines and cut buying of Indian stocks. The US Federal Open Market Committee (FOMC) on Wednesday decided to maintain its US$85 billion in monthly bond purchases, and said the world’s largest economy is showing signs of “underlying strength.” US data released on Thursday showed a drop in jobless claims, while a gauge of business activity jumped the most in three decades.
“Speculation on the timing of the FOMC’s tapering has increased after the Fed’s positive tone on the economy,” said Hong Seok-chan, a currency analyst at Daishin Economy Research Institute in Seoul. “Foreign fund flows into equities have slowed.”
The Asia Dollar Index lost 0.4 percent after gaining 1.2 percent in the preceding four weeks. The rupiah slumped 2.8 percent in the five days to 11,334 per US dollar and the yuan, which touched a 20-year high on Oct. 25, retreated 0.25 percent to 6.0995. The rupee weakened 0.4 percent to 61.73 and the ringgit fell 0.4 percent to 3.1707.
South Korea’s won was 0.1 percent stronger for the week at 1,060.80 per US dollar, and has gained 5.8 percent in the past three months. South Korean Finance Minister Hyun Oh-seok said in Seoul on Thursday that the government would take steps to curb “herd behavior” in the currency market.
Elsewhere, Thailand’s baht weakened 0.6 percent to 31.20 per US dollar, halting two weeks of gains. The Philippine peso declined 0.4 percent to 43.215 and Vietnam’s dong was little changed at 21,095 per US dollar.
ECB RATE CUT?
In Europe, the euro slid the most in more than a year versus the US dollar as weaker-than-forecast economic data for the currency region fueled speculation the European Central Bank would cut interest rates as soon as at its meeting next week.
The greenback climbed the most since June against a basket of 10 major peers after the Fed said it sees economic improvement even as it plans to maintain stimulus while it awaits evidence of further gains. A gauge of currency volatility rose for the first week since August.
The euro fell 2.3 percent to US$1.3487 this week in New York, the largest decrease since the five days ended July 6 last year, after reaching an almost two-year high of US$1.3832 on Oct. 25. The shared currency weakened 1 percent to ¥133.08, while the Japanese currency lost 1.3 percent against the US dollar to 98.67.
The Bloomberg US Dollar Index gained 1.5 percent, the most since the week ended June 21, to 1,015.69. It reached 1,016.58 on Friday, the strongest level since Sept. 18.
In London, the pound fell 1.5 percent this week to US$1.5925, the steepest drop since the period ended July 5. Sterling gained 0.8 percent to £0.84.69 per euro, the biggest increase since Sept. 27.
Among the rows of vibrators, rubber torsos and leather harnesses at a Chinese sex toys exhibition in Shanghai this weekend, the beginnings of an artificial intelligence (AI)-driven shift in the industry quietly pulsed. China manufactures about 70 percent of the world’s sex toys, most of it the “hardware” on display at the fair — whether that be technicolor tentacled dildos or hyper-realistic personalized silicone dolls. Yet smart toys have been rising in popularity for some time. Many major European and US brands already offer tech-enhanced products that can enable long-distance love, monitor well-being and even bring people one step closer to
Malaysia’s leader yesterday announced plans to build a massive semiconductor design park, aiming to boost the Southeast Asian nation’s role in the global chip industry. A prominent player in the semiconductor industry for decades, Malaysia accounts for an estimated 13 percent of global back-end manufacturing, according to German tech giant Bosch. Now it wants to go beyond production and emerge as a chip design powerhouse too, Malaysian Prime Minister Anwar Ibrahim said. “I am pleased to announce the largest IC (integrated circuit) Design Park in Southeast Asia, that will house world-class anchor tenants and collaborate with global companies such as Arm [Holdings PLC],”
Sales in the retail, and food and beverage sectors last month continued to rise, increasing 0.7 percent and 13.6 percent respectively from a year earlier, setting record highs for the month of March, the Ministry of Economic Affairs said yesterday. Sales in the wholesale sector also grew last month by 4.6 annually, mainly due to the business opportunities for emerging applications related to artificial intelligence (AI) and high-performance computing technologies, the ministry said in a report. The ministry forecast that retail, and food and beverage sales this month would retain their growth momentum as the former would benefit from Tomb Sweeping Day
Thousands of parents in Singapore are furious after a Cordlife Group Ltd (康盛人生集團), a major operator of cord blood banks in Asia, irreparably damaged their children’s samples through improper handling, with some now pursuing legal action. The ongoing case, one of the worst to hit the largely untested industry, has renewed concerns over companies marketing themselves to anxious parents with mostly unproven assurances. This has implications across the region, given Cordlife’s operations in Hong Kong, Macau, Indonesia, the Philippines and India. The parents paid for years to have their infants’ cord blood stored, with the understanding that the stem cells they contained