The US dollar on Friday pulled back from near a four-month low against the Japanese yen and snapped an eight-day losing streak against the safe-haven currency after Republicans killed their bill to overhaul the US healthcare system.
Republican leaders of the US House of Representatives pulled legislation to overhaul the US healthcare system from consideration due to a shortage of votes, despite desperate lobbying by the White House and its allies in the US Congress, dealing a stiff setback to US President Donald Trump.
With a risk-averse mood across markets, the greenback has slipped about 1.3 percent against the yen this week.
On Friday, it rose 0.31 percent to ￥111.27.
“The last few days, the market has sort of traded on the back foot on anticipation of the vote that would happen at some point this week,” said Mazen Issa, senior foreign-exchange strategist at TD Securities in New York. “Generally, risk sentiment had been undermined off of that.”
“Maybe just lifting the uncertainty premium has markets breathing a sigh of relief for now,” Issa said.
The US dollar index, which measures the greenback against a basket of six major currencies, on Friday fell 0.02 percent at 99.739, after falling to a seven-week low of 99.527 earlier in the session.
The index is down 0.6 percent from last week’s 100.30.
Investors have been split on whether a defeat for the bill would knock the US dollar and stock markets, because it would suggest Trump’s inability to get reforms through the US Congress, or whether it would boost them, as he would then be able to move straight onto tax reforms.
“If this stronger [US] dollar has legs, it depends on the next step. If there is a pivot to taxes from healthcare, the market has to see the plan,” said Paresh Upadhyaya, director of currency strategy at Pioneer Investments in Boston.
In Taipei, the New Taiwan dollar on Friday was unchanged against the greenback at NT$30.488. The NT dollar rose 0.5 percent against the US dollar from last week’s NT$30.626.
The euro on Friday gained 0.19 percent to US$1.0800, close to a seven-week peak of US$1.0825 touched on Wednesday on the view that the European Central Bank is heading toward tightening monetary policy as growth and inflation accelerates across the euro zone.
The common currency gained 0.6 percent against the greenback from last week’s US$1.0740.
Sterling on Friday fell against the US dollar and euro from the previous session’s one-month highs, as investors braced for Britain to begin next week the formal process of leaving the EU.
Additional reporting by CNA
Gogoro Inc (睿能創意) yesterday launched its first electric bicycle, the Gogoro Eeyo 1, in Taiwan, after unveiling the bike in New York in late May and in France on Tuesday. The company said it would also introduce the series in other European countries such as Germany and the Netherlands. The “Eeyo project” is the fourth of Gogoro’s eight projects that concentrate on smart transportation, which includes Gogoro’s electric scooter, battery swap system and electric scooter sharing service, company founder and chief executive officer Horace Luke (陸學森) told a media briefing in Taipei. “There are various types of city commuters. We will not
EXPERIMENTAL DRUG: While news about a COVID-19 vaccine is more eye-catching, developing a treatment would be more viable, the Senhwa boss said Senhwa Biosciences Inc (生華科) aims to raise NT$1.5 billion (US$50.57 million) by issuing 15 million new common shares in the third quarter of this year to fund the research of new drugs, including the experimental drug Silmitasertib for the treatment of COVID-19, the company said on Monday. That would be the firm’s largest fundraising effort after it raised more than NT$1.4 billion from an initial public offering on the Taipei Exchange (TPEX) in April 2017, chief financial officer Sarah Chang (張小萍) told the Taipei Times by telephone. The price of the new shares would depend on the firm’s average share price
NOT A PANACEA: Offering 5G services would not solve the problem of declining telecom incomes, chairman Sheih Chi-mau said, expecting a flat 5G telecom revenue Chunghwa Telecom Co (中華電信) yesterday became the nation’s first telecom to debut its 5G services, offering tiered tariffs that include a threshold of NT$599 and flat rates, as it aims to switch half of its subscribers to the 5G network within three years. Subscribers would have unlimited data transmission for monthly fees starting at NT$1,399 — the same flat rate as when the company launched its 4G service in 2014 — and they can subscribe to the highest-rate plan for NT$2,699 per month for faster data transmission speeds and larger bandwidth, the company said. Data transmission speeds would be within the range
STAYING AHEAD: TSMC expects its sales this year to grow 14 to 19 percent and could spend up to US$3.52 billion on research and development, leaving its rivals far behind Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) reported that the US last year approved 99 percent of its patent applications, which placed the tech giant among the top patent holders in the US. In its Corporate Social Responsibility Report, TSMC said it last year secured about 3,600 patents worldwide, including more than 2,300 in the US. As of the end of last year, TSMC owned more than 39,000 patents, the report said. The company last year filed almost 6,500 patent applications worldwide and ranked among the top 10 patent applicants in the US. In Taiwan, it was the largest patent applicant for the fourth