The New Taiwan (NT) dollar yesterday closed down 0.35 percent, or NT$0.117, at a seven-year low of NT$33.742 against the greenback in Taipei trading, as the currency joined the depreciation of the region’s currencies, traders said.
It was the 23rd trading session that the NT dollar traded below NT$33 against its US counterpart, suggesting it might not bounce back in the foreseeable future, as the central bank dislikes excessive volatility.
The depreciation came after the TAIEX lost 1.04 percent, or 81.73 points, to 7742.88 on light volume of NT$81.78 billion (US$2.43 billion), taking its cue from the overnight tumble on Wall Street, Taiwan Stock Exchange data showed.
Foreign institutional players slashed their positions in local shares by NT$3.74 billion, while mutual funds and proprietary traders cut their holdings by NT$201.78 million and NT$94.45 million respectively.
“A general pessimistic sentiment has gripped markets across the world, though there are no new and major downside risks unfolding,” said Tai Hui (許長泰), JPMorgan Asset Management’s Hong Kong-based chief strategist on Asia.
Combined turnover on the Taipei Foreign Exchange and the Cosmos Foreign Exchange markets amounted to US$1 billion, according to data from the two exchanges.
The local currency could next challenge the NT$34 mark as there is no reason for it to appreciate, traders said, citing crude oil price volatility and geopolitical tensions.
In times of uncertainty, investors tend to take refuge in the US dollar, traders said, adding that except for exporters, no one would be selling the greenback.
Taiwan’s export-reliant economy failed to lend any support either, with GDP growth likely to decline in the current quarter due to the absence of a catalyst and a relative high base last year, economists said.
‘BIG LOSS’: This year might see the last generation of Huawei’s Kirin chips, as their production would stop next month because they are made using US technology Chinese tech giant Huawei Technologies Co (華為) is running out of processor chips to make smartphones due to US sanctions and would be forced to stop production of its own most advanced chips, a company executive has said, in a sign of growing damage to Huawei’s business from US pressure. Huawei, one of the biggest producers of smartphones and network equipment, is at the center of US-Chinese tension over technology and security. Washington last year cut off Huawei’s access to US components and technology, and those penalties were tightened in May, when the White House barred vendors worldwide from using US
’WHITE BOX’: The open platform would give local firms access to Cisco’s cloud-based mobile network to develop 5G telecom equipment and tap into the global market The Ministry of Economic Affairs (MOEA) yesterday introduced a new 5G “open lab” in collaboration with US-based information technology and networking giant Cisco Systems Inc to address the rapidly growing “white box” 5G networking equipment market. The open lab will be a platform where Taiwanese manufacturers can access Cisco’s cloud-based mobile network to develop their own 5G telecom equipment, such as small-cell base stations, network switches, modems and Internet of things (IoT) devices, a ministry statement said. The open platform would allow Taiwanese manufacturers to tap into the lucrative 5G telecom equipment market, which was previously monopolized by Nokia Oyj, Ericsson AB
CORPORATE SCANDAL: Cathay Life has invested NT$13.3 billion in Bank Mayapada since 2015, but the latest loss of NT$8.8 billion has completely written off its investment Cathay Life Insurance Co (國泰人壽) yesterday said it would recognize an investment loss of NT$8.8 billion (US$298.1 million) in Indonesia’s Bank Mayapada Internasional Tbk PT due to concerns about the lender’s operations amid a corporate scandal. The company said it would revise its earnings result for June, from a net profit of NT$6.52 billion to a net loss of NT$520 million, its first monthly loss over the past 17 months. After booking an investment loss of NT$5.2 billion in Bank Mayapada earlier this year, Cathay Life has so far recognized total investment losses of NT$14 billion in the lender, executive vice president
Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) yesterday reported that revenue last month expanded 25 percent annually, but fell 12.8 percent month-on-month to NT$105.96 billion (US$3.59 billion). In the first seven months of this year, the chipmaker’s revenue surged 33.6 percent to NT$727.26 billion, compared with NT$544.46 billion a year earlier. TSMC has said it aims to grow its revenue by more than 20 percent this year. The company has since May 15 stopped taking new orders from Huawei Technologies Co (華為), its second-biggest customer after Apple Inc, due to the US’ restrictions on exports containing US technologies. TSMC has no plans to