Asian currencies fell this week, led by the South Korean won and India’s rupee, as concern about the pace of a global economic recovery and the risk of debt defaults deterred investment in emerging-market assets.
State-run Dubai World met with creditors to restructure US$26 billion of borrowings and Fitch Ratings downgraded its credit rating for Greece. US Federal Reserve Chairman Ben Bernanke said on Monday the US economy faces “formidable headwinds” that will keep expansion to a “moderate” pace.
The won slid 1 percent this week to 1,164.05 per US dollar, according to data compiled by Bloomberg. The Indian rupee weakened 0.5 percent to 46.53 and the Singapore dollar dropped 0.6 percent to S$1.3892.
Malaysia’s ringgit traded near a one-month low as the FTSE Bursa Malaysia KLCI Index lost 0.8 percent this week. The ringgit weakened 0.5 percent to 3.3995 per US dollar in Kuala Lumpur, according to data compiled by Bloomberg. It reached 3.4125 on Dec. 9, the weakest level since Nov. 6.
The New Taiwan dollar weakened 0.3 percent to NT$32.278 against the greenback this week.
The Indonesian rupiah fell 0.3 percent to 9,443 and the Philippine peso dropped 0.3 percent to 46.13. The Thai baht was little changed at 33.10, while the yuan traded at 6.8277 from 6.8270 last Friday.
The US dollar advanced to a two-month high against the euro as a bigger-than-forecast increase in retail sales and consumer sentiment indicated the US economic recovery may be gaining momentum.
The US dollar appreciated 1.7 percent to US$1.4615 per euro this week, from US$1.4858 last Friday. It touched US$1.4586 on Friday, the strongest level since October.
The greenback decreased 1.6 percent to ¥89.10, from ¥90.56 last week. The euro dropped 3.2 percent to ¥130.24, from ¥134.54 last week.
Sterling fell for a fourth consecutive week, declining 1.3 percent to US$1.6259 on concern the UK government’s budget deficit will keep growing as the government spends more money to revive the economy.
NEXT GENERATION: The four plants in the Central Taiwan Science Park, designated Fab 25, would consist of four 1.4-nanometer wafer manufacturing plants, TSMC said Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) plans to begin construction of four new plants later this year, with the aim to officially launch production of 2-nanometer semiconductor wafers by late 2028, Central Taiwan Science Park Bureau director-general Hsu Maw-shin (許茂新) said. Hsu made the announcement at an event on Friday evening celebrating the Central Taiwan Science Park’s 22nd anniversary. The second phase of the park’s expansion would commence with the initial construction of water detention ponds and other structures aimed at soil and water conservation, Hsu said. TSMC has officially leased the land, with the Central Taiwan Science Park having handed over the
AUKUS: The Australian Ambassador to the US said his country is working with the Pentagon and he is confident that submarine issues will be resolved Australian Ambassador to the US Kevin Rudd on Friday said that if Taiwan were to fall to China’s occupation, it would unleash China’s military capacities and capabilities more broadly. He also said his country is working with the Pentagon on the US Department of Defense’s review of the AUKUS submarine project and is confident that all issues raised will be resolved. Rudd, who served as Australian prime minister from 2007 to 2010 and for three months in 2013, made the remarks at the Aspen Security Forum in Colorado and stressed the longstanding US-Australia alliance and his close relationship with the US Undersecretary
TAIWAN IS TAIWAN: US Representative Tom Tiffany said the amendment was not controversial, as ‘Taiwan is not — nor has it ever been — part of Communist China’ The US House of Representatives on Friday passed an amendment banning the US Department of Defense from creating, buying or displaying any map that shows Taiwan as part of the People’s Republic of China (PRC). The “Honest Maps” amendment was approved in a voice vote on Friday as part of the Department of Defense Appropriations Act for the 2026 fiscal year. The amendment prohibits using any funds from the act to create, buy or display maps that show Taiwan, Kinmen, Matsu, Penghu, Wuciou (烏坵), Green Island (綠島) or Orchid Island (Lanyu, 蘭嶼) as part of the PRC. The act includes US$831.5 billion in
‘WORLD WAR III’: Republican Representative Marjorie Taylor Greene said the aid would inflame tensions, but her amendment was rejected 421 votes against six The US House of Representatives on Friday passed the Department of Defense Appropriations Act for fiscal 2026, which includes US$500 million for Taiwan. The bill, which totals US$831.5 billion in discretionary spending, passed in a 221-209 vote. According to the bill, the funds for Taiwan would be administered by the US Defense Security Cooperation Agency and would remain available through Sept. 30, 2027, for the Taiwan Security Cooperation Initiative. The legislation authorizes the US Secretary of Defense, with the agreement of the US Secretary of State, to use the funds to assist Taiwan in procuring defense articles and services, and military training. Republican Representative
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