The New Taiwan dollar yesterday declined 0.78 percent, or NT$0.253, in Taipei trading to close at NT$32.621 against the US dollar, deeper than other currencies in the region, central bank figures showed.
The fall represented a six-year low and came after the government on Friday cut its forecast for GDP growth this year by more than half to 1.56 percent, from 3.28 percent in May.
Combined turnover on the Taipei Foreign Exchange and Cosmos Foreign Exchange markets amounted to US$1.36 billion, a relatively moderate volume.
RAISING COMPETITION
“The local currency might soon drop below the NT$33 level as the central bank is likely seeking to catch up with major trade rivals in raising export competitiveness,” a currency trader at a local bank said by telephone.
The South Korean won lost 0.77 percent yesterday, while the Singaporean dollar weakened 0.38 percent and the Japanese yen retreated 0.13 percent.
The Chinese yuan closed down 0.04 percent, one week after the People’s Bank of China lowered its fixing guidance by 1.9 percent, jolting foreign exchange markets across the world.
“The NT dollar depreciation is reasonable and practical in light of the nation’s negative inflationary reading, allowing the central bank room for monetary easing to support economic growth,” the trader said.
Exports are now projected to contract for the year, dragged down by a global slowdown and growing competition from Chinese technology firms, the Directorate-General of Budget, Accounting and Statistics said.
SUPPORT
The NT dollar might find support at NT$35 as seen during the global financial crisis, the trader said.
However, exporters have called for a weaker NT dollar, with some suggesting a benchmark of NT$36 to help them compete with Chinese rivals.
The NT dollar opened at NT$32.435 and fluctuated between NT$32.170 and NT$32.530 during the session.
In a related development, a cheaper yuan made the currency less attractive among Taiwanese as yuan deposits saw a monthly retreat of 0.47 percent for the first time to 336.65 billion yuan last month, the central bank said yesterday.
TRIMMING
Deposits at domestic banking units totaled 282.92 billion yuan last month, down 0.16 percent from one month earlier, while deposits at offshore banking units shed 0.2 percent to 53.73 billion yuan, the central bank said.
It is the first time both Taiwanese companies and individuals trimmed yuan holdings, attributable mainly to higher risk awareness, a central bank official said, adding that local banks refrained from offering high interest rates to encourage yuan deposits.
With an approval rating of just two percent, Peruvian President Dina Boluarte might be the world’s most unpopular leader, according to pollsters. Protests greeted her rise to power 29 months ago, and have marked her entire term — joined by assorted scandals, investigations, controversies and a surge in gang violence. The 63-year-old is the target of a dozen probes, including for her alleged failure to declare gifts of luxury jewels and watches, a scandal inevitably dubbed “Rolexgate.” She is also under the microscope for a two-week undeclared absence for nose surgery — which she insists was medical, not cosmetic — and is
CAUTIOUS RECOVERY: While the manufacturing sector returned to growth amid the US-China trade truce, firms remain wary as uncertainty clouds the outlook, the CIER said The local manufacturing sector returned to expansion last month, as the official purchasing managers’ index (PMI) rose 2.1 points to 51.0, driven by a temporary easing in US-China trade tensions, the Chung-Hua Institution for Economic Research (CIER, 中華經濟研究院) said yesterday. The PMI gauges the health of the manufacturing industry, with readings above 50 indicating expansion and those below 50 signaling contraction. “Firms are not as pessimistic as they were in April, but they remain far from optimistic,” CIER president Lien Hsien-ming (連賢明) said at a news conference. The full impact of US tariff decisions is unlikely to become clear until later this month
GROWING CONCERN: Some senior Trump administration officials opposed the UAE expansion over fears that another TSMC project could jeopardize its US investment Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) is evaluating building an advanced production facility in the United Arab Emirates (UAE) and has discussed the possibility with officials in US President Donald Trump’s administration, people familiar with the matter said, in a potentially major bet on the Middle East that would only come to fruition with Washington’s approval. The company has had multiple meetings in the past few months with US Special Envoy to the Middle East Steve Witkoff and officials from MGX, an influential investment vehicle overseen by the UAE president’s brother, the people said. The conversations are a continuation of talks that
Nintendo Co hopes to match the runaway success of the Switch when its leveled-up new console hits shelves on Thursday, with strong early sales expected despite the gadget’s high price. Featuring a bigger screen and more processing power, the Switch 2 is an upgrade to its predecessor, which has sold 152 million units since launching in 2017 — making it the third-best-selling video game console of all time. However, despite buzz among fans and robust demand for pre-orders, headwinds for Nintendo include uncertainty over US trade tariffs and whether enough people are willing to shell out. The Switch 2 “is priced relatively high”