Sun, Feb 04, 2018 - Page 14 News List

NT dollar falls against greenback

NORMALIZING POLICY:A survey showed that eurozone manufacturing maintained its momentum last month, lifting expectations that the ECB will end stimulus efforts

Staff writer, with CNA and Reuters

The New Taiwan dollar on Friday fell against the US dollar, losing NT$0.028 to close at NT$29.235.

Turnover totaled US$950 million during the trading session.

The greenback opened at NT$29.210, and moved between NT$29.171 and NT$29.242 before the close.

The local currency lost NT$0.134, or 0.5 percent, from a close of NT$29.101 on Jan. 26.

Elsewhere on Friday, the US dollar reversed earlier falls against the euro as traders took some profits ahead of US nonfarm payroll data, although its rise did little to improve a difficult week in which rising US Treasury yields failed to help.

The eurozone’s economic revival and expectations of monetary tightening have made the single currency more attractive for investors, while strong growth around the world has encouraged investors to move cash out of the US dollar.

Yields on 10-year US Treasuries rose to near a four-year high, with economic growth and buoyant oil prices driving up inflation expectations and central banks starting to sound more hawkish.

Rising Treasury yields are traditionally associated with a stronger US dollar, but Nordea Markets currency strategist Niels Christensen said that “bond investors are selling out of US Treasuries and at the same time liquidating out of their long US dollar positions.”

However, with some euro profit-taking ahead of the nonfarm numbers that were due later on Friday, the US dollar recovered marginally.

Against a basket of currencies, the greenback rose 0.2 percent. Against the euro, it gained 0.2 percent on the day to US$1.2490, but that still left the single currency within sight of last week’s three-year high of US$1.2538.

A survey released on Thursday showed that eurozone manufacturing continued to boom last month, bolstering the view that the European Central Bank (ECB) is on track to normalize monetary policy.

The euro has also benefited from ECB President Mario Draghi’s reluctance to talk down the currency, giving bulls the green light to push the euro higher.

Many strategists have said the US dollar’s sensitivity to domestic news currently looks weak — ING Groep NV analysts called it “limited and short-lived” — as investors focus on monetary policy repricing opportunities elsewhere.

“Today’s US labor market report poses only temporary downside risk to the cross,” ING said in a note on Friday.

Elsewhere, the US dollar added to recent gains against the Japanese yen, helping it move away from a four-month low of ¥108.28 hit a week ago. The US dollar rose 0.4 percent on the day to ¥109.865.

The greenback was also up 0.3 percent against sterling at US$1.4224, although the pound remains on its best run since 2012.

The Chinese yuan continued its recent rise against the US dollar, notching up a high of 6.2773, a two-and-a-half-year high. The yuan is up 0.8 percent for the week and was last trading at these levels in August 2015.

Bitcoin fell to less than US$9,000 for the first time since November last year after India said it did not consider cryptocurrencies legal tender and would look to eliminate their use as payment systems.

The remarks came after regulators in South Korea, China and Russia said they would clamp down on virtual currencies.

Bitcoin is now at US$8,500, compared with its record high of about US$19,500 seen in mid-December last year at the height of a cryptoboom.

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