The US dollar gained against the euro and other currencies on Friday as a government report showed a surge in US inflation and as the euro was dented by Ireland’s rejection of the Lisbon Treaty.
The euro fell to US$1.5384 at 9pm GMT, compared with US$1.5435 in New York late on Thursday.
Against the Japanese currency, the US dollar advanced to ¥108.15 from ¥107.91.
The dollar picked up momentum in the wake of the inflation report as traders said it raised the odds that the US Federal Reserve would raise interest rates.
US consumer prices jumped by a more-than-expected 0.6 percent last month, largely as energy costs soared, a US Labor Department survey showed.
Economists said they were not surprised that energy costs leapt higher, but said the report could cause some angst at the Fed as it suggests inflationary pressures are building.
Core consumer price inflation (CPI), which excludes volatile food and energy prices, gained 0.2 percent last month, consistent with market forecasts.
“The figures are likely to fundamentally confirm dollar bulls on the backdrop of widespread inflation fears in the market,” analysts at Commerzbank said.
Michael Woolfolk at Bank of New York Mellon said the relatively tame core inflation reading provided no reason to be complacent about upside risks to inflation.
“Rather, it provides the Federal Reserve with a reason to act sooner rather than later in order to get ahead of rising inflationary expectations in an attempt to head it off,” he said.
The Fed had slashed its key base rate in recent months to 2 percent amid flagging economic growth. The decline in rates and moderating economic growth have weighed down the dollar.
The euro meanwhile came under pressure after the Irish rejected the European Union’s Treaty of Lisbon in a referendum. The Irish rejection threatens to scupper the EU’s political integration process, as all 27 member states need to ratify the treaty for it to take effect.
In late New York trading, the dollar stood at 1.0460 Swiss francs, up from SF1.0416 on Thursday. The pound was at US$1.9481, down from US$1.9465 a day earlier.
Swedish Member of Parliament Hampus Hagman is pushing for changing the name of the nation’s trade office in Taipei to signal improved relations with “Asia’s perhaps foremost democracy.” Hagman on Wednesday last week proposed renaming the Swedish Trade and Invest Council to “Sweden’s Office in Taipei,” following similar changes by other nations. The Swedish Trade and Invest Council, part of Business Sweden, is owned by the Swedish government and Swedish industry. Taiwan and Sweden share important values such as respect for democracy, human rights, the rule of law and freedom of speech, Hagman said in the motion, adding that the two nations
TWO CASES: The five allegedly conspired with conglomerates, threatening the nation’s governance and subverting the rules of ethical conduct, a deputy chief prosecutor said Taipei prosecutors yesterday charged three legislators and one former lawmaker with contravening the Anti-Corruption Act (貪污治罪條例) in a case linked to former Pacific Distribution Investment Co (太平洋流通) chairman Lee Heng-lung’s (李恆隆) battle with the Far Eastern Group (遠東集團) over ownership of the Pacific SOGO Department Store (太平洋崇光百貨) chain, while independent Legislator Chao Cheng-yu (趙正宇) was indicted in a separate case involving two funeral services companies and a plot of land in a national park. Chinese Nationalist Party (KMT) legislators Chen Chao-ming (陳超明) and Sufin Siluko (廖國棟), Democratic Progressive Party (DPP) Legislator Su Chen-ching (蘇震清) and former New Power Party legislator
PENGHU INSPECTION: Taiwan cannot let its enemies strut around in its airspace, Tsai said, one day after a Chinese spokesman denied a median line exists in the Taiwan Strait Following China’s assertion on Monday that there is no “median line” in the Taiwan Strait, President Tsai Ing-wen (蔡英文) yesterday pledged to defend the nation’s airspace during a visit to an air force base in Penghu, saying that Taiwan cannot allow others to flex their military muscle in its territorial airspace. Tsai praised the “heroic performance” of the pilots of the Indigenous Defense Fighters who have been intercepting Chinese People’s Liberation Army Air Force planes in recent days. “I have a lot of confidence in you. As soldiers of the Republic of China [ROC], how could we let enemies strut
EFFICIENCY: The rules for Philippine arrivals were revised after 17.6% of arrivals with symptoms tested positive, compared with 0.7% of those with no symptoms Starting today, Chinese spouses who hold a reunion permit can apply to enter Taiwan and travelers without symptoms from the Philippines do not need to be tested for COVID-19 upon arrival, but are to be tested after a 14-day quarantine, the Central Epidemic Command Center (CECC) said yesterday. Minister of Health and Welfare Chen Shih-chung (陳時中), who heads the center, said that from today, Chinese who are married to a Taiwanese citizen and hold a reunion permit can apply to the National Immigration Agency for entry into Taiwan. Chinese who are married to a foreign national and hold an accompanied reunion permit