The US dollar traded near two-week high against the euro after Federal Reserve Chairman Ben Bernanke said an increase in inflation expectations is a “significant concern” for the central bank.
An index gauging the greenback against the currencies of six US trading partners rose on Friday for a third day as Bernanke’s comment led traders to raise bets that policy makers will increase borrowing costs later this year. The European Central Bank is forecast by economists to keep its main refinancing rate at a six-year high.
Bernanke “definitely fed into market expectations of a rate hike later this year,” said Brian Dolan, chief currency strategist at FOREX.com, a unit of online currency trading firm Gain Capital in Bedminster, New Jersey. “It gave a boost to the dollar.”
The dollar was little changed at US$1.5441 per euro in Tokyo, after touching US$1.5411 on June 3, the highest level since May 14. The dollar traded at ¥105.21, following a 0.14 percent increase on Friday. The euro was little changed at ¥162.48.
Bernanke cited an increase in indicators that the public expects prices to rise in a speech at Harvard University in Cambridge, Massachusetts, on Friday.
The consumer price index rose 3.9 percent for the year ended in April and expectations of inflation five years from now rose to 3.4 percent last month versus 3 percent in January, the Reuters/University of Michigan Survey showed.
CONSOLIDATION? Taiwan Thinktank deputy executive-general Doong Sy-chi said Beijing’s intimidation tactics are further alienating those who identify as Chinese Only 2 percent of respondents to a poll on constitutional amendments and national identity identified as Chinese, while 62.6 percent identified as Taiwanese, the Taiwan Thinktank said yesterday. Legislators have proposed amendments to the Additional Articles of the Constitution (憲法增修條文), which would change the definition of the nation’s territory, remove the Taiwan Provincial Government as an entity, prioritize the use of “Taiwan” for national groups at international events, and remove restrictions on defining the national emblem, national flag and national anthem. The poll showed that 80.5 percent of respondents agreed that the nation should participate as “Taiwan” at events organized by world
NO SIGN OF WAR: Only if Taiwanese showed determination to defend the nation would others be willing to help in the event of a Chinese attack, the premier said Should China launch a war against Taiwan, the military would fight to the last standing person, Minister of National Defense Yen De-fa (嚴德發) said yesterday, adding that the nation has fully fleshed-out defense strategies. “Beijing has continued its acts of provocation against Taiwan, but there are currently no signs that it is ready to launch a full-scale war,” Yen said at the Legislative Yuan in Taipei. Asked how long Taiwan could withstand an attack from China, Premier Su Tseng-chang (蘇貞昌) said: “Taiwan will not fall.” Any belligerent force that initiates acts of war would pay a heavy price, and so too would Beijing,
MISTAKE: The Global Covenant of Mayors for Climate and Energy is not a UN body, and the government is committed to protecting the nation’s name, Joseph Wu said The Ministry of Foreign Affairs yesterday condemned the Global Covenant of Mayors for Climate and Energy for listing Taiwanese cities as belonging to China on its Web site, and asked that it correct the error. The organization was inaugurated in Brussels in 2016 as a global coalition of mayors committed to reducing greenhouse gas emissions. Six Taiwanese cities at the time joined the coalition as cities in “Taiwan,” the ministry said. However, officials from the Kaohsiung City Government — one of the organization’s members — last week noticed that the city was now listed on the organization’s Web site as a
MOTHERLAND? Taiwanese who take part in China’s National Day celebrations could be fined NT$100,000 to NT$500,000 if found to have contravened Taiwanese laws The Ministry of Culture yesterday cautioned China-based Taiwanese artists against breaching Taiwanese law by taking part in China’s National Day celebrations. The ministry issued the statement following media reports that Ouyang Nana (歐陽娜娜) is to sing a popular Chinese patriotic song titled My Motherland (我的祖國), and Angela Chang (張韶涵) is to sing Protect (守護) with Chinese entertainers at an event to mark China’s National Day on Thursday. The Mainland Affairs Council is investigating whether such behavior contravenes regulations in the Act Governing Relations Between the People of the Taiwan Area and the Mainland Area (臺灣地區與大陸地區人民關係條例), the ministry said. If the behavior involves matters