Sun, Sep 02, 2018 - Page 14 News List

US dollar continues global climb

Staff writer, with CNA and Reuters

The New Taiwan dollar on Friday fell against the US dollar, shedding NT$0.020 to close at NT$30.731.

Turnover totaled US$719 million during the trading session.

Trading opened at NT$30.743, moving between NT$30.674 and NT$30.744 before the close.

That compared with a close of NT$30.783 on Aug. 24.

Elsewhere on Friday, the US dollar climbed for a second straight session as investors sought the safety of the US currency after reports that the US and Canada ended trade negotiations without any deal.

The greenback ended last month on a positive note, up about 0.6 percent amid trade tensions. It has advanced in four of the past five months, gaining nearly 9 percent in that period.

“The trade-positive news in the beginning of the week with the US-Mexico deal has turned, and has become trade-negative,” Oanda Corp currency strategist Alfonso Esparza said in Toronto.

“Now we’re seeing resistance on the Canada front with respect to NAFTA [North American Free Trade Agreement],” he said.

“Negotiations have concluded, but nothing has been decided, so there’s a little bit of uncertainty. That has created a risk-averse environment, which has benefited the [US] dollar,” he added.

US and Canadian officials on Friday concluded a round of talks on NAFTA, a Canadian official said.

The Wall Street Journal reported that US President Donald Trump would tell US Congress of plans to proceed with just the US-Mexico trade deal.

Trump said that Canada had taken advantage of the US on trade, as talks between the two countries, which are seeking to revamp the trade agreement, soured sharply.

“I love Canada, but they’ve taken advantage of our country for many years,” Trump said during a speech in North Carolina.

Concerns about a deal with Canada grew after Canadian Minister of Foreign Affairs Chrystia Freeland earlier on Friday said that Canada is looking for a “good deal, not just any deal.”

However, Trump said any trade deal with Canada would be “totally on our terms,” confirming an earlier report from the Toronto Star.

Trump’s remarks ignited more US dollar buying.

In late afternoon trading, the US dollar index was up 0.4 percent at 95.106.

The Canadian dollar fell 0.7 percent versus the US dollar to US$0.7649.

The greenback had late on Thursday rallied in a safe-haven move after Bloomberg News reported that Trump wanted to move ahead with a plan to impose tariffs on US$200 billion of Chinese imports next week.

The euro was also hit by Trump saying that an EU proposal to eliminate tariffs on cars was “not good enough.”

Investors were fearful about Europe’s outlook as Trump has threatened to impose tariffs on cars assembled by German automakers.

The single currency was last down 0.6 percent at US$1.1601, after losing about 0.3 percent overnight, pressured by a rise in Italian government bond yields.

Emerging-market currencies also fell. The Argentine peso, the world’s worst-performing currency this year, was down about 1 percent against the US dollar, which last traded at 38 pesos.

On Thursday, the Argentine peso tumbled 10 percent, bringing month-to-date losses to 27 percent.

The Argentine Central Bank on Thursday voted unanimously at an emergency meeting to raise its benchmark rate from 45 percent to 60 percent.

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