The euro fell this week, heading for its worst week against the yen in two months, after Handelsblatt reported the IMF is discussing aid programs with at least 10 Eastern European governments.
The euro weakened versus 12 of its 16 major counterparts after the German newspaper cited unidentified IMF officials as saying the countries applying for loans for the first time included Bulgaria, Croatia and Macedonia.
The yen and the dollar rose against most major currencies as US stock futures fell, boosting demand for safer assets. The euro also dropped before a French report that economists said will show industrial output slid for a ninth month.
“There are lingering worries over the financial health of eastern and central European countries,” said Tsutomu Soma, a bond and currency dealer at Okasan Securities Co in Tokyo. “Investors are still risk averse, so they’re likely to sell the euro and buy the yen and dollar as safe-haven currencies.”
The euro declined to ¥129.79 as of 7:02am in London from ¥130.36 on Thursday in New York, set for a 3.3 percent loss in the past week, the biggest since the period ended May 15. The euro dropped to US$1.3966 from US$1.4020. Japan’s currency was little changed at ¥92.95 per US dollar from ¥92.99.
India’s rupee and Malaysia’s ringgit led losses in Asian currencies this week as reports showed shrinking global demand for the region’s goods, damping the outlook for an economic recovery.
The rupee had its biggest weekly loss since February after the government projected the budget deficit will widen to the highest in 16 years as India spends more to boost growth. Malaysia’s currency had its worst week in almost five months as exports and factory production extended a slump into May. Japanese machinery orders unexpectedly shrank in May and Taiwan’s overseas sales fell for a 10th straight month last month.
“There was quite a bit of apprehension in the markets,” said Vishnu Varathan, a regional economist at Forecast Singapore Pte. “With the first half coming to an end, funds were trying to pull back a bit. They weren’t sure about the trajectory that was put forth earlier on the global economic recovery.”
The rupee dropped 2.3 percent this week to 49.005 per US dollar in Mumbai, according to data compiled by Bloomberg.
The ringgit declined 1.4 percent to 3.5775. It touched 3.5855 on July 9, the lowest level since April 29.
The won slid 1.3 percent to 1,282.50 in Seoul.
The New Taiwan dollar dropped 0.5 percent this week to NT$33.05 against the US currency.
Elsewhere, the Singapore dollar weakened 0.6 percent this week to S$1.4623, the Philippine peso fell 0.4 percent to 48.30 and the Thai baht was unchanged at 34.08.
The paramount chief of a volcanic island in Vanuatu yesterday said that he was “very impressed” by a UN court’s declaration that countries must tackle climate change. Vanuatu spearheaded the legal case at the International Court of Justice in The Hague, Netherlands, which on Wednesday ruled that countries have a duty to protect against the threat of a warming planet. “I’m very impressed,” George Bumseng, the top chief of the Pacific archipelago’s island of Ambrym, told reporters in the capital, Port Vila. “We have been waiting for this decision for a long time because we have been victims of this climate change for
MASSIVE LOSS: If the next recall votes also fail, it would signal that the administration of President William Lai would continue to face strong resistance within the legislature The results of recall votes yesterday dealt a blow to the Democratic Progressive Party’s (DPP) efforts to overturn the opposition-controlled legislature, as all 24 Chinese Nationalist Party (KMT) lawmakers survived the recall bids. Backed by President William Lai’s (賴清德) DPP, civic groups led the recall drive, seeking to remove 31 out of 39 KMT lawmakers from the 113-seat legislature, in which the KMT and the Taiwan People’s Party (TPP) together hold a majority with 62 seats, while the DPP holds 51 seats. The scale of the recall elections was unprecedented, with another seven KMT lawmakers facing similar votes on Aug. 23. For a
All 24 lawmakers of the main opposition Chinese Nationalists Party (KMT) on Saturday survived historical nationwide recall elections, ensuring that the KMT along with Taiwan People’s Party (TPP) lawmakers will maintain opposition control of the legislature. Recall votes against all 24 KMT lawmakers as well as Hsinchu Mayor Ann Kao (高虹安) and KMT legislative caucus whip Fu Kun-chi (傅崐萁) failed to pass, according to Central Election Commission (CEC) figures. In only six of the 24 recall votes did the ballots cast in favor of the recall even meet the threshold of 25 percent of eligible voters needed for the recall to pass,
Rainfall is expected to become more widespread and persistent across central and southern Taiwan over the next few days, with the effects of the weather patterns becoming most prominent between last night and tomorrow, the Central Weather Administration (CWA) said yesterday. Independent meteorologist Daniel Wu (吳德榮) said that based on the latest forecast models of the combination of a low-pressure system and southwesterly winds, rainfall and flooding are expected to continue in central and southern Taiwan from today to Sunday. The CWA also warned of flash floods, thunder and lightning, and strong gusts in these areas, as well as landslides and fallen
RSS