The New Taiwan dollar posted a fifth weekly gain, the longest winning streak since 2013, as investors pushed back bets for higher US interest rates following data that cast doubts on the strength of a recovery.
The NT dollar has climbed 2 percent against the greenback this year in Asia’s best performance, as US reports ranging from jobs to manufacturing and consumer spending disappointed.
Only 12 percent of economists in a Bloomberg survey see the US Federal Reserve tightening policy in June, down from 45 percent in a poll last month.
“People have some concerns over the US recovery in the second quarter,” said Andrew Tsai (蔡耀德), an economist at KGI Securities Co (凱基證券) in Taipei. “But whether it’s inflation expectations or domestic demand, we should see some improvement, so we expect the US dollar to rise again, which means there’s pressure for a correction in Taiwan’s dollar.”
The NT dollar rose 0.3 percent from April 10 and on Friday to NT$31.162 against the greenback, Taipei Forex Inc prices show.
A rebound in the yen also contributed to the NT dollar’s rise this week, Tsai added. Japan’s currency jumped 1.2 percent to ￥118.82 versus its US counterpart late in Asia trading.
The Singapore dollar advanced 1.9 percent for the week, leading the rise in Asian currencies. A gauge that tracks Asian currencies against the greenback rose 0.5 percent.
Malaysia’s currency also completed a fifth weekly gain, the longest rally since July, as a rebound in oil prices boosted sentiment for the ringgit, which is Asia’s worst-performing currency this year. Brent crude climbed 9.5 percent this week and is up 15 percent this month, easing concern that government revenue would flag in the oil-exporting nation.
The ringgit’s advance is “largely due to softness in the [US] dollar and some firmness in oil,” said Saktiandi Supaat, head of foreign-exchange research at Malayan Banking Bhd in Singapore.
The yuan in Hong Kong posted the biggest weekly gain in a month after Chinese Premier Li Keqiang (李克強) said in a Financial Times interview that the country cannot rely on a declining currency to boost exports and does not want further devaluation.
A report on Wednesday showed the economy expanded 7 percent in the first quarter from a year earlier, the slowest pace since 2009.
The offshore yuan climbed 0.4 percent from April 10, while the Shanghai spot rate advanced 0.2 percent.
Elsewhere in Asia this week, South Korea’s won rose 0.8 percent his week, Indonesia’s rupiah appreciated 0.5 percent, Thailand’s baht gained 0.5 percent and the Philippine peso advanced 0.4 percent. India’s rupee and the Vietnamese dong were little changed.
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