The New Taiwan dollar sank to a three-week low as a deepening global economic slump encouraged investors to favor safer bets over emerging-market assets.
It weakened against the US dollar for a fourth day after overseas investors sold more of the nation’s shares than they bought in seven of the past eight days. Government estimates released after the close of trading showed that the economy is expected to shrink for a second quarter in the three months through next month, joining the US, Europe, Japan, Hong Kong and Singapore in recession.
“The decoupling story seems to be a no-show in the mess,” said Mitul Kotecha, global head of foreign exchange strategy at Calyon, a unit of France’s Credit Agricole SA.
“It’s less the credit concerns here and more economic concerns. There’s more downside for Asian currencies,” Kotecha said.
The NT dollar declined 0.4 percent to close at NT$33.405 after falling earlier 0.5 percent to NT$33.439, its weakest level since Oct. 29.
Eight of Asia’s 10 most-active currencies excluding the yen weakened yesterday and equities tumbled across the region.
Taiwan’s 10-year government bonds rose by the most in eight days, driving yields to a five-year low, as investors favored the safest assets.
Merida Industry Co (美利達) has seen signs of recovery in the US and European markets this year, as customers are gradually depleting their inventories, the bicycle maker told shareholders yesterday. Given robust growth in new orders at its Taiwanese factory, coupled with its subsidiaries’ improving performance, Merida said it remains confident about the bicycle market’s prospects and expects steady growth in its core business this year. CAUTION ON CHINA However, the company must handle the Chinese market with great caution, as sales of road bikes there have declined significantly, affecting its revenue and profitability, Merida said in a statement, adding that it would
Greek tourism student Katerina quit within a month of starting work at a five-star hotel in Halkidiki, one of the country’s top destinations, because she said conditions were so dire. Beyond the bad pay, the 22-year-old said that her working and living conditions were “miserable and unacceptable.” Millions holiday in Greece every year, but its vital tourism industry is finding it harder and harder to recruit Greeks to look after them. “I was asked to work in any department of the hotel where there was a need, from service to cleaning,” said Katerina, a tourism and marketing student, who would
i Gasoline and diesel prices at fuel stations are this week to rise NT$0.1 per liter, as tensions in the Middle East pushed crude oil prices higher last week, CPC Corp, Taiwan (台灣中油) and Formosa Petrochemical Corp (台塑石化) said yesterday. International crude oil prices last week rose for the third consecutive week due to an escalating conflict between Israel and Iran, as the market is concerned that the situation in the Middle East might affect crude oil supply, CPC and Formosa said in separate statements. Front-month Brent crude oil futures — the international oil benchmark — rose 3.75 percent to settle at US$77.01
RISING: Strong exports, and life insurance companies’ efforts to manage currency risks indicates the NT dollar would eventually pass the 29 level, an expert said The New Taiwan dollar yesterday rallied to its strongest in three years amid inflows to the nation’s stock market and broad-based weakness in the US dollar. Exporter sales of the US currency and a repatriation of funds from local asset managers also played a role, said two traders, who asked not to be identified as they were not authorized to speak publicly. State-owned banks were seen buying the greenback yesterday, but only at a moderate scale, the traders said. The local currency gained 0.77 percent, outperforming almost all of its Asian peers, to close at NT$29.165 per US dollar in Taipei trading yesterday. The
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