The euro tumbled for a second week against the US dollar, falling to its lowest level in more than four years as concern that Europe’s debt crisis is spreading pushed investors to the safest currencies.
Europe’s shared currency plunged below US$1.20 for the first time since March 2006 and dropped for a sixth straight week versus the yen. The US dollar and the yen climbed as a lower-than-forecast payrolls report on Friday fueled concern the US economic recovery may be slowing, damping demand for growth-linked currencies. US retail sales growth slowed to 0.2 percent last month, data next week may show.
“There’s one driver of the market, and it’s called Europe,” said Marc Chandler, global head of currency strategy at Brown Brothers Harriman & Co in New York. “Will budget cuts hurt European growth? Will Europe’s crisis hurt US companies? Will contagion spread through the global financial system?”
The euro dropped 2.5 percent to US$1.1967 in New York, from US$1.2273 on May 28. It touched US$1.1956, the lowest level since March 2006. The euro fell 1.6 percent to ¥109.98, the biggest drop in three weeks, from ¥111.77. The US dollar gained 0.9 percent to ¥91.90, from ¥91.06 the previous week.
Hungary is in a “grave situation” because the previous government “lied” about the economy, Peter Szijjarto, a spokesman for Hungarian Prime Minister Viktor Orban, said on Friday. Hungary, whose forint tumbled 4 percent on Friday versus the US dollar, needed a US$24 billion bailout to avert default in 2008.
The euro has fallen 9.2 percent this year versus its developed-world counterparts, Bloomberg Correlation-Weighted Indexes show.
The pound rose for a second week against the euro as reports signaled the country’s economic recovery is gathering pace while the 16 economies that share the single currency falter amid the sovereign debt crisis.
The pound rose 0.4 percent to £0.8288 per euro as of 5pm on Friday, leaving it 2.4 percent stronger in the week. Against the US dollar, it lost 0.3 percent on Friday to US$1.4564, paring its weekly gain to 0.8 percent.
Beijing’s continued provocations in the Taiwan Strait reveal its intention to unilaterally change the “status quo” in the area, the US Department of State said on Saturday, calling for a peaceful resolution to cross-strait issues. The Coast Guard Administration (CGA) reported that four China Coast Guard patrol vessels entered restricted and prohibited waters near Kinmen County on Friday and again on Saturday. A State Department spokesperson said that Washington was aware of the incidents, and urged all parties to exercise restraint and refrain from unilaterally changing the “status quo.” “Maintaining peace and stability across the Taiwan Strait is in line with our [the
EXTENDED RANGE: Hsiung Sheng missiles, 100 of which might be deployed by the end of the year, could reach Chinese command posts and airport runways, a source said A NT$16.9 billion (US$534.93 million) project to upgrade the military’s missile defense systems would be completed this year, allowing the deployment of at least 100 long-range Hsiung Sheng missiles and providing more deterrence against China, military sources said on Saturday. Hsiung Sheng missiles are an extended-range version of the Hsiung Feng IIE (HF-2E) surface-to-surface cruise missile, and are believed to have a range of up to 1,200km, which would allow them to hit targets well inside China. They went into mass production in 2022, the sources said. The project is part of a special budget for the Ministry of National Defense aimed at
READY TO WORK: Taiwan is eager to cooperate and is hopeful that like-minded states will continue to advocate for its inclusion in regional organizations, Lai said Maintaining the “status quo” in the Taiwan Strait, and peace and stability in the Indo-Pacific region must be a top priority, president-elect William Lai (賴清德) said yesterday after meeting with a delegation of US academics. Leaders of the G7, US President Joe Biden and other international heads of state have voiced concerns about the situation in the Strait, as stability in the region is necessary for a safe, peaceful and prosperous world, Lai said. The vice president, who is to be inaugurated in May, welcomed the delegation and thanked them for their support for Taiwan and issues concerning the Strait. The international community
COOPERATION: Two crewmembers from a Chinese fishing boat that sank off Kinmen were rescued, two were found dead and another two were still missing at press time The Coast Guard Administration (CGA) was yesterday working with Chinese rescuers to find two missing crewmembers from a Chinese fishing boat that sank southwest of Kinmen County yesterday, killing two crew. The joint operation managed to rescue two of the boat’s six crewmembers, but two were already dead when they were pulled from the water, the agency said in a statement. Rescuers are still searching for two others from the Min Long Yu 61222, a boat registered in China’s Fujian Province that capsized and sank 1.03 nautical miles (1.9km) southwest of Dongding Island (東碇), it added. CGA Director-General Chou Mei-wu (周美伍) told a