South Korea’s won led currency gains in Asia this week as improved earnings and evidence the global economy is recovering from a recession bolstered demand for emerging-market assets.
The Bloomberg-JPMorgan Asia Dollar Index had its best week in almost two months as China and Singapore this week reported economic growth that beat analysts’ estimates. Indonesia’s rupiah fell, trimming the week’s advance, after two separate hotel explosions in Jakarta on Friday.
The New Taiwan dollar had its biggest weekly gain since May on speculation a rebound in global demand for personal computers will boost exports.
The NT dollar appreciated 0.3 percent this week to NT$32.955.
The Taiwanese currency touched an almost two-week high on optimism an end to the global recession will fuel demand for local exports. Electronics account for about two-fifths of Taiwan’s overseas sales and China is the biggest buyer.
“The market has gradually moved back into risk appetite,” said Callum Henderson, head of currency strategy at Standard Chartered Plc in Singapore. “US corporate earnings and Chinese GDP were above expectations, all of that is supportive for the balance in equities and supportive for assets.”
The won jumped 1.8 percent this week to 1,259.3 per US dollar in Seoul, according to data compiled by Bloomberg. Singapore’s dollar strengthened 0.8 percent to S$1.4515, while India’s rupee rose 0.5 percent to 48.74.
The Asia Dollar Index climbed 0.6 percent this week, the most since May 22, as China on Thursday said GDP increased 7.9 percent in the second quarter from a year earlier, exceeding the median 7.8 percent forecast in a Bloomberg survey. The MSCI Asia-Pacific Index of stocks advanced 2.9 percent, the most since the five-day period ended May 8.
The rupiah fell 0.5 percent on Friday to 10,175 a dollar, trimming the week’s gain to 0.2 percent. Malaysia’s ringgit traded little changed at 3.5680 after touching 3.5535 on Thursday, a one-week high.
Elsewhere, the Philippine peso climbed 0.5 percent this week to 48.075 per US dollar and the Thai baht was little changed at 34.07. China’s yuan traded at 6.8317 versus 6.8328 last Friday.
The US dollar and the yen posted the biggest declines against the euro since May as corporate earnings topped forecasts and US reports showing gains in housing and a slower decline in industrial production.
The Canadian dollar advanced to a one-month high against the greenback as crude oil rebounded.
The US currency fell 1.2 percent to US$1.4102 per euro on Friday, from US$1.3936 last Friday. The yen lost 3 percent to 132.85 per euro, from 129 a week earlier. The declines were the biggest since the five-day period ended May 22. The Japanese currency fell 1.8 percent to ¥94.19.
The Mexican peso rebounded from a two-and-a-half-month low, rising 2.6 percent this week to 13.34 per dollar.
The yen appreciated against 13 of 16 most actively traded currencies in the past month, rising 1 percent versus the Mexican peso. The yen is weaker against the entire group this year.
The Canadian dollar appreciated the most of the 16 major currencies against the yen this week, rising 6.4 percent to ¥84.60, as crude oil gained.
MORE VISITORS: The Tourism Administration said that it is seeing positive prospects in its efforts to expand the tourism market in North America and Europe Taiwan has been ranked as the cheapest place in the world to travel to this year, based on a list recommended by NerdWallet. The San Francisco-based personal finance company said that Taiwan topped the list of 16 nations it chose for budget travelers because US tourists do not need visas and travelers can easily have a good meal for less than US$10. A bus ride in Taipei costs just under US$0.50, while subway rides start at US$0.60, the firm said, adding that public transportation in Taiwan is easy to navigate. The firm also called Taiwan a “food lover’s paradise,” citing inexpensive breakfast stalls
TRADE: A mandatory declaration of origin for manufactured goods bound for the US is to take effect on May 7 to block China from exploiting Taiwan’s trade channels All products manufactured in Taiwan and exported to the US must include a signed declaration of origin starting on May 7, the Bureau of Foreign Trade announced yesterday. US President Donald Trump on April 2 imposed a 32 percent tariff on imports from Taiwan, but one week later announced a 90-day pause on its implementation. However, a universal 10 percent tariff was immediately applied to most imports from around the world. On April 12, the Trump administration further exempted computers, smartphones and semiconductors from the new tariffs. In response, President William Lai’s (賴清德) administration has introduced a series of countermeasures to support affected
CROSS-STRAIT: The vast majority of Taiwanese support maintaining the ‘status quo,’ while concern is rising about Beijing’s influence operations More than eight out of 10 Taiwanese reject Beijing’s “one country, two systems” framework for cross-strait relations, according to a survey released by the Mainland Affairs Council (MAC) on Thursday. The MAC’s latest quarterly survey found that 84.4 percent of respondents opposed Beijing’s “one country, two systems” formula for handling cross-strait relations — a figure consistent with past polling. Over the past three years, opposition to the framework has remained high, ranging from a low of 83.6 percent in April 2023 to a peak of 89.6 percent in April last year. In the most recent poll, 82.5 percent also rejected China’s
PLUGGING HOLES: The amendments would bring the legislation in line with systems found in other countries such as Japan and the US, Legislator Chen Kuan-ting said Democratic Progressive Party (DPP) Legislator Chen Kuan-ting (陳冠廷) has proposed amending national security legislation amid a spate of espionage cases. Potential gaps in security vetting procedures for personnel with access to sensitive information prompted him to propose the amendments, which would introduce changes to Article 14 of the Classified National Security Information Protection Act (國家機密保護法), Chen said yesterday. The proposal, which aims to enhance interagency vetting procedures and reduce the risk of classified information leaks, would establish a comprehensive security clearance system in Taiwan, he said. The amendment would require character and loyalty checks for civil servants and intelligence personnel prior to