The dollar fell against most of its major counterparts as a report showed European nations emerged from their worst recession since World War II, encouraging investors to buy higher-yielding assets.
The euro advanced for a second week against the dollar and approached its highest level since August last year before stalling just short of US$1.5050, a level strategists identified as a threshold for further gains.
The US dollar slid 0.4 percent to US$1.4903 per euro this week, from US$1.4847 last Friday. It touched US$1.5048 on on Wednesday, within a fifth of a cent of the 15-month low reached on Oct. 26.
The greenback dropped for a third week against the yen, falling 0.2 percent to ¥89.66, from ¥89.88. The euro gained 0.1 percent to ¥133.63, from ¥133.45.
The British pound rose for a third week against the greenback on signs the recovery is taking hold, even after Bank of England Governor Mervyn King said a weaker currency may help boost the economy.
The pound climbed 0.5 percent in the week to US$1.6689 as of 5:20pm in London on Friday. Sterling was little changed in the five days to £0.8938 per euro.
The pound has advanced 14 percent against the dollar this year and 7 percent against the euro currency.
Asian currencies rose this week, led by the Philippine peso and Indonesia’s rupiah, as signs the global economy is recovering from a slump brightened the outlook for exports and bolstered demand for emerging-market assets.
The peso gained 1.1 percent this week to 46.71 per dollar in Manila, the rupiah climbed 1 percent to 9,366 and the Indian rupee strengthened 1.0 percent to 46.335, according to data compiled by Bloomberg. The Asia Dollar Index advanced 0.6 percent and the MSCI Asia-Pacific Index of regional equities gained 1.6 percent.
The New Taiwan dollar rose 0.5 percent in the week to NT$32.339 against the greenback.
Elsewhere, the ringgit advanced 0.8 percent this week to 3.3785 per dollar, Thailand’s baht climbed 0.3 percent to 33.28 and the Singapore dollar appreciated 0.4 percent to S$1.3870.
Taiwan is projected to lose a working-age population of about 6.67 million people in two waves of retirement in the coming years, as the nation confronts accelerating demographic decline and a shortage of younger workers to take their place, the Ministry of the Interior said. Taiwan experienced its largest baby boom between 1958 and 1966, when the population grew by 3.78 million, followed by a second surge of 2.89 million between 1976 and 1982, ministry data showed. In 2023, the first of those baby boom generations — those born in the late 1950s and early 1960s — began to enter retirement, triggering
ECONOMIC BOOST: Should the more than 23 million people eligible for the NT$10,000 handouts spend them the same way as in 2023, GDP could rise 0.5 percent, an official said Universal cash handouts of NT$10,000 (US$330) are to be disbursed late next month at the earliest — including to permanent residents and foreign residents married to Taiwanese — pending legislative approval, the Ministry of Finance said yesterday. The Executive Yuan yesterday approved the Special Act for Strengthening Economic, Social and National Security Resilience in Response to International Circumstances (因應國際情勢強化經濟社會及民生國安韌性特別條例). The NT$550 billion special budget includes NT$236 billion for the cash handouts, plus an additional NT$20 billion set aside as reserve funds, expected to be used to support industries. Handouts might begin one month after the bill is promulgated and would be completed within
NO CHANGE: The TRA makes clear that the US does not consider the status of Taiwan to have been determined by WWII-era documents, a former AIT deputy director said The American Institute in Taiwan’s (AIT) comments that World War-II era documents do not determine Taiwan’s political status accurately conveyed the US’ stance, the US Department of State said. An AIT spokesperson on Saturday said that a Chinese official mischaracterized World War II-era documents as stating that Taiwan was ceded to the China. The remarks from the US’ de facto embassy in Taiwan drew criticism from the Ma Ying-jeou Foundation, whose director said the comments put Taiwan in danger. The Chinese-language United Daily News yesterday reported that a US State Department spokesperson confirmed the AIT’s position. They added that the US would continue to
IMPORTANT BACKER: China seeks to expel US influence from the Indo-Pacific region and supplant Washington as the global leader, MAC Minister Chiu Chui-cheng said China is preparing for war to seize Taiwan, Mainland Affairs Council (MAC) Minister Chiu Chui-cheng (邱垂正) said in Washington on Friday, warning that Taiwan’s fall would trigger a regional “domino effect” endangering US security. In a speech titled “Maintaining the Peaceful and Stable Status Quo Across the Taiwan Strait is in Line with the Shared Interests of Taiwan and the United States,” Chiu said Taiwan’s strategic importance is “closely tied” to US interests. Geopolitically, Taiwan sits in a “core position” in the first island chain — an arc stretching from Japan, through Taiwan and the Philippines, to Borneo, which is shared by
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