The New Taiwan dollar on Thursday fell against the US dollar, shedding NT$0.012 to close at NT$31.402.
However, that was a gain of 0.7 percent from a close of NT$31.612 on May 31.
Turnover totaled US$761 million during the trading session, the last of the week, as the market was closed on Friday for the Dragon Boat Festival holiday long weekend.
The greenback opened at NT$31.4, and moved between NT$31.349 and NT$31.417 before the close.
Elsewhere on Friday, the euro was headed for its best week since September last year, largely due to weakness in the US dollar.
US nonfarm payrolls data for last month showed a drop in hiring, which investors said could bolster the case for the US Federal Reserve to cut interest rates later this year.
The prospects of the Fed reacting to an escalating US-China trade row by cutting rates this week dragged the US dollar to a two-month low and helped the euro rise to more than US$1.13.
The US dollar was marginally up on Friday, but still headed for its worst week since March.
Meanwhile, the euro relinquished all of its gains from Thursday after a policy review by the European Central Bank that was less dovish than expected.
It was down 0.1 percent to US$1.1269, but still set for a weekly gain of 0.9 percent, its best weekly performance against the US dollar since late September.
“The NFP [nonfarm payrolls] series, more than most, tends to hold up until it falls off the edge of a cliff, and that cliff is getting closer,” Societe Generale SA strategist Kit Juckes said.
A slowdown in the US labor market was evident in a worse-than-expected ADP National Employment Report released on Wednesday.
Others were more sanguine about the US dollar’s prospects.
“I believe the market’s assumption that the Fed is going to cut interest rates soon is premature. For now, the Fed can afford to remain patient,” ACLS Global analyst Marshall Gittler said.
“I would expect the dollar to recover over the medium term, although it may take some time before people realize that a rate cut is not imminent,” Gittler added.
The European Central Bank on Thursday ruled out raising rates in the next year and even opened the door to buying more bonds as a global trade war and Brexit drag the eurozone economy down.
However, the market had been expecting a stronger hint of a rate cut, and consequently the euro and eurozone bond yields rose, putting more pressure on the US dollar.
Against a basket of six other major currencies, the US dollar was steady at 97.115, trading about 0.3 percent above Wednesday’s eight-week low of 96.749.
The US dollar index was on course for a 0.72 percent loss this week, its worst weekly performance since the week of March 15, when it gave up 0.73 percent.
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