The euro fell, ending its longest weekly rally in nine months versus the dollar, on concern stress tests of EU banks failed to identify sources of weakness that would aggravate the region’s debt crisis.
The 16-nation currency depreciated against the majority of its most-actively traded counterparts, slumping the greatest amount versus growth-sensitive currencies such as the Australian and New Zealand dollars. Tests showing that only seven banks flunked the EU’s crisis scenario failed to ease concern lenders may lack sufficient capital, pushing the euro to reverse gains recorded earlier in the week.
“The euro’s definitely had its ups and downs,” said Vassili Serebriakov, a currency strategist at Wells Fargo & Co in New York. “Markets were questioning whether the stress tests were stressful enough, in other words, whether they were stringent enough.”
The euro fell 0.2 percent this week to US$1.2909 on Friday in New York, from US$1.2930 on July 16. The yen weakened 1 percent to ¥87.46 per US dollar from ¥86.57 last week. The euro slumped 3.1 percent to A$1.4414 versus Australia’s currency and 2.5 percent to NZ$1.775 against its New Zealand counterpart.
The euro gained on Friday as traders closed out bets that the currency would weaken further when equities rallied. The yen extended its decline versus the dollar as Japanese policymakers signaled for a third day that a stronger currency poses a danger to growth, spurring speculation they will take steps to counter that risk.
The pound advanced against the US dollar for the second straight week amid signs the UK economic recovery is taking hold, potentially reducing the need for the central bank to extend stimulus measures.
The pound gained 0.8 percent to US$1.5423 as of 4:27pm in London on Friday, from US$1.5301 on July 16. It appreciated 1.4 percent to £0.8330 per euro.
South Korea’s won and Malaysia’s ringgit led weekly gains among Asian currencies on signs global investors are seeking higher returns in emerging markets because of their faster economic growth.
The won rose 0.4 percent this week to 1,199.15 per US dollar in Seoul, according to data compiled by Bloomberg. The ringgit and the Singapore dollar each appreciated by the same amount in the week to 3.1965 and S$1.3709, respectively.
The New Taiwan dollar, which was little changed for the week, gained 0.1 percent to NT$32.152 on Friday.
“Hot money is pouring into the stock market,” said Eric Hsing, a debt trader at First Securities Inc (第一金證券) in Taipei. “The central bank will continue to slow the Taiwan dollar’s growth to keep its edge on exports.”
The Indian rupee climbed 0.4 percent on Friday to 46.945 per US dollar, paring its loss for the week to 0.4 percent, after a report showed investors poured money into equity funds focused on India and China in the week ended Wednesday.
The baht strengthened 0.2 percent on Friday to 32.22 per US dollar, paring its weekly loss, on speculation foreign funds are flowing into Thailand and after the improved profit outlook by US companies eased concern the global economic recovery is faltering.
Elsewhere, Indonesia’s rupiah and Philippine peso are little changed for the week at 9,048 and 46.315 against the US dollar, respectively.
DEFENDING DEMOCRACY: Taiwan shares the same values as those that fought in WWII, and nations must unite to halt the expansion of a new authoritarian bloc, Lai said The government yesterday held a commemoration ceremony for Victory in Europe (V-E) Day, joining the rest of the world for the first time to mark the anniversary of the end of World War II in Europe. Taiwan honoring V-E Day signifies “our growing connections with the international community,” President William Lai (賴清德) said at a reception in Taipei on the 80th anniversary of V-E Day. One of the major lessons of World War II is that “authoritarianism and aggression lead only to slaughter, tragedy and greater inequality,” Lai said. Even more importantly, the war also taught people that “those who cherish peace cannot
STEADFAST FRIEND: The bills encourage increased Taiwan-US engagement and address China’s distortion of UN Resolution 2758 to isolate Taiwan internationally The Presidential Office yesterday thanked the US House of Representatives for unanimously passing two Taiwan-related bills highlighting its solid support for Taiwan’s democracy and global participation, and for deepening bilateral relations. One of the bills, the Taiwan Assurance Implementation Act, requires the US Department of State to periodically review its guidelines for engagement with Taiwan, and report to the US Congress on the guidelines and plans to lift self-imposed limitations on US-Taiwan engagement. The other bill is the Taiwan International Solidarity Act, which clarifies that UN Resolution 2758 does not address the issue of the representation of Taiwan or its people in
The Philippines yesterday criticized a “high-risk” maneuver by a Chinese vessel near the disputed Scarborough Shoal (Huangyan Island, 黃岩島) in a rare incident involving warships from the two navies. The Scarborough Shoal — a triangular chain of reefs and rocks in the contested South China Sea — has been a flash point between the countries since China seized it from the Philippines in 2012. Taiwan also claims the shoal. Monday’s encounter took place approximately 11.8 nautical miles (22km) southeast” of the Scarborough Shoal, the Philippine military said, during ongoing US-Philippine military exercises that Beijing has criticized as destabilizing. “The Chinese frigate BN 554 was
LEISURE: The new law adds Confucius’ birthday, the anniversary of the Battle of Guningtou, Constitution Day and Little New Year as national holidays The Legislative Yuan yesterday passed new legislation adding four national holidays and making Workers’ Day a national holiday for all sectors. The Chinese Nationalist Party (KMT) and the Taiwan People’s Party used their combined majority in the legislature to push the jointly proposed draft through its third and final reading. This new law supersedes the existing regulations for the implementation of memorial days and state holidays, which are administered by the Ministry of the Interior. The new law recognizes Confucius’ birthday on Sept. 28, the anniversary of the Battle of Guningtou on Oct. 25, Constitution Day on Dec. 25 and “Little New Year,”
RSS