The New Taiwan dollar yesterday rose against the US dollar, gaining NT$0.031 to close at NT$30.305 on thin turnover as foreign traders stayed away from the trading floor for the weekend, dealers said.
Taiwan was the only foreign exchange market to open yesterday, a Saturday, to make up for a lost trading session during the Double Ten National Day holiday from Saturday next week to Oct. 10.
The US dollar lost momentum as local exporters continued to raise their holdings in the NT dollar to meet fund demand at the end of the quarter, while foreign institutional buying in local equities added more pressure on the US currency, the dealers said.
The greenback opened at NT$30.350, moving between NT$30.222 and NT$30.355 before the close, with turnover totaling US$259 million.
Soon after the market opened, the US dollar faced follow-through selling from a session earlier, and downward pressure continued as Taiwanese exporters rushed to buy into the NT dollar to meet seasonal fund demand as the third quarter approaches its end, the dealers said.
Further gains posted on the local equity market on the back of foreign institutional buying also served as a clear indication to currency traders to chase the NT dollar, they added.
Foreign institutional investors bought a net NT$322 million (US$10.63 million) of shares on the main board, sending the weighted index up 0.52 percent at yesterday’s close, Taiwan Stock Exchange data showed.
As no other regional currencies were traded yesterday, the NT dollar moved in a narrow range throughout the session without clear indications, the dealers said.
On Friday, the US dollar was little changed against a basket of major currencies after conflicting US economic data, leaving it on course for its largest weekly increase this year amid a rise in expectations for inflation and US interest rate hikes.
A one-week increase of just less than 1 percent helped the greenback post its first monthly gain against its peers since February.
Ironically, data from the US Commodity Futures Trading Commission showed speculators boosted net short bets on the US dollar to the most since late September 2012.
The US dollar on Friday fell to session lows after the release of a report showing US consumer spending barely rose in August.
However, that was offset by an unexpected increase in the Institute for Supply Management Chicago’s purchasing managers’ index and an in-line reading on consumer sentiment.
US Federal Reserve Chair Janet Yellen earlier this week said that the central bank planned to stay on its current rate hike path, which suggested to investors that it would raise rates in December, with further increases to follow next year.
The Fed has raised rates twice this year.
Analysts said the week’s rally was sparked by the German election last weekend, in which the far-right Alternative for Germany won seats in the German Bundestag for the first time, leading to worries that anti-European political movements on the continent, including those in Spain and Italy, could be more worrisome than initially thought.
“Economically, the situation in the US merits the fact that the [US] dollar has gained,” said Juan Perez, currency strategist at Tempus Inc in Washington. “The political dissolution in Europe continues and now with the situation in Spain it symbolizes that there are separatist movements across the continent that cannot be ignored.”
“On a geopolitical perspective, Europe is in a little bit tougher situation than we are,” he added.
Comments from Yellen and the release of a foundation for US President Donald Trump’s proposed tax overhaul also pushed inflation expectations higher, with US Treasury yields rising to months and years-long highs on Wednesday.
The US dollar index, the trade-weighted basket of the greenback against its rivals, was flat at 93.02. It rose 0.9 percent for the week and was up 0.35 percent for the month.
The euro rose 0.35 percent to US$1.1824, having earlier hit a three-day high against the US dollar. The greenback was 0.1 percent higher against the Japanese yen at ¥112.43.
China has claimed a breakthrough in developing homegrown chipmaking equipment, an important step in overcoming US sanctions designed to thwart Beijing’s semiconductor goals. State-linked organizations are advised to use a new laser-based immersion lithography machine with a resolution of 65 nanometers or better, the Chinese Ministry of Industry and Information Technology (MIIT) said in an announcement this month. Although the note does not specify the supplier, the spec marks a significant step up from the previous most advanced indigenous equipment — developed by Shanghai Micro Electronics Equipment Group Co (SMEE, 上海微電子) — which stood at about 90 nanometers. MIIT’s claimed advances last
ISSUES: Gogoro has been struggling with ballooning losses and was recently embroiled in alleged subsidy fraud, using Chinese-made components instead of locally made parts Gogoro Inc (睿能創意), the nation’s biggest electric scooter maker, yesterday said that its chairman and CEO Horace Luke (陸學森) has resigned amid chronic losses and probes into the company’s alleged involvement in subsidy fraud. The board of directors nominated Reuntex Group (潤泰集團) general counsel Tamon Tseng (曾夢達) as the company’s new chairman, Gogoro said in a statement. Ruentex is Gogoro’s biggest stakeholder. Gogoro Taiwan general manager Henry Chiang (姜家煒) is to serve as acting CEO during the interim period, the statement said. Luke’s departure came as a bombshell yesterday. As a company founder, he has played a key role in pushing for the
EUROPE ON HOLD: Among a flurry of announcements, Intel said it would postpone new factories in Germany and Poland, but remains committed to its US expansion Intel Corp chief executive officer Pat Gelsinger has landed Amazon.com Inc’s Amazon Web Services (AWS) as a customer for the company’s manufacturing business, potentially bringing work to new plants under construction in the US and boosting his efforts to turn around the embattled chipmaker. Intel and AWS are to coinvest in a custom semiconductor for artificial intelligence computing — what is known as a fabric chip — in a “multiyear, multibillion-dollar framework,” Intel said in a statement on Monday. The work would rely on Intel’s 18A process, an advanced chipmaking technology. Intel shares rose more than 8 percent in late trading after the
Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) has appointed Rose Castanares, executive vice president of TSMC Arizona, as president of the subsidiary, which is responsible for carrying out massive investments by the Taiwanese tech giant in the US state, the company said in a statement yesterday. Castanares will succeed Brian Harrison as president of the Arizona subsidiary on Oct. 1 after the incumbent president steps down from the position with a transfer to the Arizona CEO office to serve as an advisor to TSMC Arizona’s chairman, the statement said. According to TSMC, Harrison is scheduled to retire on Dec. 31. Castanares joined TSMC in