The Philippine peso fell this week by the most in two months, leading losses among Asian currencies, on concern record oil prices will quicken inflation and slow economic growth.
The peso slid for a sixth week after Economic Planning Secretary Augusto Santos said GDP growth in the first quarter probably slowed to as little as 5.2 percent because inflation at a three-year high restrained consumer spending. Oil prices reached US$135.09, double what they were a year ago.
South Korea’s won and Indonesia’s rupiah also slumped on demand for dollars to fund oil imports.
“Inflation is definitely weighing on the economic outlook not just in the first quarter but for the rest of the year,” said Vishnu Varathan, a regional economist at Forecast Singapore PTE. “That’s adding to the peso’s weakness.”
The peso fell 1.5 percent this week to 43.465 per dollar in Manila, according to the Bankers Association of the Philippines, the most since the five days ended March 14. The won dropped 0.7 percent to 1,047.65 and the rupiah declined for a third week, to 9,313.
The Philippine economy may grow 6 percent in the first quarter, the slowest pace in six quarters, a survey compiled by Bloomberg News showed before a government report on May 29. Growth was 7.4 percent in the final quarter of last year.
Central bank Deputy Governor Diwa Guinigundo said this week the economy “will definitely suffer” if oil prices remain above US$125 a barrel. The country imports almost all of its fuel needs.
The won fell to 1,057.40 on May 21, the lowest since October 2005, on concern oil prices will increase the nation’s import bill and slow economic growth. South Korea imports almost all of its oil needs and reported a fourth consecutive current-account deficit in March.
Indonesia’s rupiah fell after Indonesian Energy Minister Purnomo Yusgiantoro said the government will raise domestic fuel prices by an average 29 percent to reduce its subsidies, prompting protests from students and labor unions.
Malaysia’s ringgit pared a weekly gain after the government said it will also cut subsidies within two months. The ringgit traded at 3.2175 per US dollar in Kuala Lumpur for a 0.5 percent gain on the week, according to Bloomberg data, ending a four-week slump.
Elsewhere, the New Taiwan dollar gained 0.5 percent in the five days to NT$30.5, halting a four-week slide. Thailand’s baht advanced 0.7 percent to 32.06 against the US currency, while the Vietnamese dong fell for a third week to trade at 16,199.
Authorities have detained three former Taiwan Semiconductor Manufacturing Co (TMSC, 台積電) employees on suspicion of compromising classified technology used in making 2-nanometer chips, the Taiwan High Prosecutors’ Office said yesterday. Prosecutors are holding a former TSMC engineer surnamed Chen (陳) and two recently sacked TSMC engineers, including one person surnamed Wu (吳) in detention with restricted communication, following an investigation launched on July 25, a statement said. The announcement came a day after Nikkei Asia reported on the technology theft in an exclusive story, saying TSMC had fired two workers for contravening data rules on advanced chipmaking technology. Two-nanometer wafers are the most
NEW GEAR: On top of the new Tien Kung IV air defense missiles, the military is expected to place orders for a new combat vehicle next year for delivery in 2028 Mass production of Tien Kung IV (Sky Bow IV) missiles is expected to start next year, with plans to order 122 pods, the Ministry of National Defense’s (MND) latest list of regulated military material showed. The document said that the armed forces would obtain 46 pods of the air defense missiles next year and 76 pods the year after that. The Tien Kung IV is designed to intercept cruise missiles and ballistic missiles to an altitude of 70km, compared with the 60km maximum altitude achieved by the Missile Segment Enhancement variant of PAC-3 systems. A defense source said yesterday that the number of
A bipartisan group of US representatives have introduced a draft US-Taiwan Defense Innovation Partnership bill, aimed at accelerating defense technology collaboration between Taiwan and the US in response to ongoing aggression by the Chinese Communist Party (CCP). The bill was introduced by US representatives Zach Nunn and Jill Tokuda, with US House Select Committee on the Chinese Communist Party Chairman John Moolenaar and US Representative Ashley Hinson joining as original cosponsors, a news release issued by Tokuda’s office on Thursday said. The draft bill “directs the US Department of Defense to work directly with Taiwan’s Ministry of National Defense through their respective
CHINA’s BULLYING: The former British prime minister said that he believes ‘Taiwan can and will’ protect its freedom and democracy, as its people are lovers of liberty Former British prime minister Boris Johnson yesterday said Western nations should have the courage to stand with and deepen their economic partnerships with Taiwan in the face of China’s intensified pressure. He made the remarks at the ninth Ketagalan Forum: 2025 Indo-Pacific Security Dialogue hosted by the Ministry of Foreign Affairs and the Prospect Foundation in Taipei. Johnson, who is visiting Taiwan for the first time, said he had seen Taiwan’s coastline on a screen on his indoor bicycle, but wanted to learn more about the nation, including its artificial intelligence (AI) development, the key technology of the 21st century. Calling himself an
RSS