The US dollar stumbled against the euro on Friday as US economic data dashed expectations for a rate hike, while the yen was hammered by the lack of a clear signal on rate moves by the Bank of Japan.
The euro rose to US$1.3379 at 9pm GMT, from US$1.3310 in New York late on Thursday.
The US currency gained ground against the New Taiwan dollar on Friday, rising NT$0.057 to close at NT$33.142. A total of US$1.01 billion changed hands during the day's trading.
The US dollar opened at NT$33.065 and fluctuated between NT$32.985 and NT$33.150.
The greenback meanwhile jumped to ¥123.45, up from ¥122.88 on Thursday.
US economic figures, including those for core inflation, industrial production and consumer confidence, offset a stronger-than-expected headline inflation number and a strong Empire survey on manufacturing activity in the New York region.
"Receding US inflationary pressures, flat industrial production and weaker consumer confidence are exactly what the doctor ordered for the struggling European currencies, which are now extending their rebound," Ashraf Laidi at CMC Markets said.
US figures put headline inflation at 0.7 percent last month, a bigger rise than the 0.6 percent expected, while the more closely watched core rate rose by just 0.1 percent, below forecasts for a slightly bigger 0.2 percent rise.
"Core CPI [consumer price index] has fallen to the lowest year-on-year level in 12 months, lending further support to the US Fed's case that slower growth will bring elevated core inflation back in line with price stability without resorting to higher [interest] rates," Bank of New York analyst Michael Woolfolk said.
Further data showed industrial output was flat last month, against expectations for a 0.2 percent rise, while the University of Michigan's consumer sentiment index fell to 83.7 this month, well below forecasts for a reading of around 87.9.
Meanwhile, the yen was another major focus for currency markets, hitting a fresh record low against the euro and a four-and-a-half-year low against the US dollar of ¥123.66.
The yen has been pressured recently by ongoing popularity for the carry trade -- where investors borrow in low-yielding currencies such as the yen to invest in higher-yielding assets elsewhere.
Losses were extended however after Bank of Japan (BOJ) governor Toshihiko Fukui expressed little concern about the currency's weakness and gave no hints on the timing of any future interest rate rise. On top of that, although the BOJ's policymakers decided to leave its overnight rate unchanged at 0.5 percent, there was some disappointment among market participants that there were no votes for a hike.
In late New York trading, the dollar stood at 1.2415 Swiss francs from SF1.2461 on Thursday.
The pound was being traded at US$1.9767 after US$1.9696.
DIVIDED VIEWS: Although the Fed agreed on holding rates steady, some officials see no rate cuts for this year, while 10 policymakers foresee two or more cuts There are a lot of unknowns about the outlook for the economy and interest rates, but US Federal Reserve Chair Jerome Powell signaled at least one thing seems certain: Higher prices are coming. Fed policymakers voted unanimously to hold interest rates steady at a range of 4.25 percent to 4.50 percent for a fourth straight meeting on Wednesday, as they await clarity on whether tariffs would leave a one-time or more lasting mark on inflation. Powell said it is still unclear how much of the bill would fall on the shoulders of consumers, but he expects to learn more about tariffs
NOT JUSTIFIED: The bank’s governor said there would only be a rate cut if inflation falls below 1.5% and economic conditions deteriorate, which have not been detected The central bank yesterday kept its key interest rates unchanged for a fifth consecutive quarter, aligning with market expectations, while slightly lowering its inflation outlook amid signs of cooling price pressures. The move came after the US Federal Reserve held rates steady overnight, despite pressure from US President Donald Trump to cut borrowing costs. Central bank board members unanimously voted to maintain the discount rate at 2 percent, the secured loan rate at 2.375 percent and the overnight lending rate at 4.25 percent. “We consider the policy decision appropriate, although it suggests tightening leaning after factoring in slackening inflation and stable GDP growth,”
Meta Platforms Inc offered US$100 million bonuses to OpenAI employees in an unsuccessful bid to poach the ChatGPT maker’s talent and strengthen its own generative artificial intelligence (AI) teams, OpenAI CEO Sam Altman has said. Facebook’s parent company — a competitor of OpenAI — also offered “giant” annual salaries exceeding US$100 million to OpenAI staffers, Altman said in an interview on the Uncapped with Jack Altman podcast released on Tuesday. “It is crazy,” Sam Altman told his brother Jack in the interview. “I’m really happy that at least so far none of our best people have decided to take them
As they zigzagged from one machine to another in the searing African sun, the workers were covered in black soot. However, the charcoal they were making is known as “green,” and backers hope it can save impoverished Chad from rampant deforestation. Chad, a vast, landlocked country of 19 million people perched at the crossroads of north and central Africa, is steadily turning to desert. It has lost more than 90 percent of its forest cover since the 1970s, hit by climate change and overexploitation of trees for household uses such as cooking, officials say. “Green charcoal” aims to protect what
RSS