The US dollar rose against most of its major peers as US Treasury yields made the biggest jump in almost a year, inciting demand for the US currency.
The euro pared a five-day loss versus the greenback on bets that Ireland will get a bailout from its financial crisis, preventing contagion across the region’s debt markets. The yen fell for a third straight week against its US counterpart, the longest losing streak this year. The US economy grew at a 2.4 percent annual rate last quarter, data next week may show.
“Yields have been very, very helpful in lifting sentiment toward the dollar,” said Andrew Wilkinson, senior market analyst at Interactive Brokers Group LLC in Greenwich, Connecticut. “Good economic data is going to boost the dollar, boost yields.”
The greenback gained against 10 of its 16 most-traded counterparts.
The dollar gained as a report this week showed Philadelphia-area manufacturing expanded. The Philadelphia Fed’s general economic index climbed to a reading of 22.5, more than four times the forecast in a Bloomberg News survey.
IntercontinentalExchange Inc’s Dollar Index, used to track the currency against those of six major US trading partners, rose for a second week in the first back-to-back weekly increase since August. It advanced 0.5 percent to 78.504 in New York.
The dollar climbed 1.2 percent to ￥83.55 on Friday, from ￥82.53 on Nov. 12, and reached ￥83.79 yen on Thursday, the highest level since Oct. 5.
The greenback rose 0.1 percent to US$1.3673 per euro, from US$1.3691 on Nov. 12. The euro gained 1.1 percent to ￥114.23, from ￥113.02 the week before.
The pound fell versus the euro for the first week in a month as prospects for a bailout of Ireland and speculation that the nation’s debt crisis will hurt British banks reduced demand for the UK currency as a haven.
Sterling also posted a weekly decline versus the dollar. The pound had risen 4.7 percent against the shared currency from Oct. 25 to Monday.
The pound weakened to ￡0.8551 per euro as of 4:30pm in London on Friday, a weekly decline of 0.6 percent. Sterling lost 1 percent versus the dollar to US$1.5950.
The currencies of commodity exporting countries including New Zealand, Mexico, Brazil and Australia rose against most of their major counterparts as prospects for Europe’s sovereign-debt turmoil to ease fueled investors’ appetite for risk.
ASIAN CURRENCIES
Asian exchange rates dropped this week on concern governments will impose controls to curb capital inflows. South Korea’s finance ministry said on Thursday it backs legislation for a tax on bonds.
South Korea’s currency appreciated 0.1 percent to 1,133.65 won per US dollar in Seoul, reducing its decline this week to 0.5 percent, according to data compiled by Bloomberg. Malaysia’s ringgit rose 0.2 percent to RM3.1174, paring the drop in the past five days to 0.2 percent. The Thai baht was little changed at 29.94 baht and was down 0.6 percent for the week.
Seoul will back legislation reinstating a 14 percent tax on interest income from treasury and central bank bonds and a 20 percent capital gains levy on their sale, the finance ministry said on Thursday.
Taiwan’s currency strengthened after the economy expanded more than forecast in the third quarter. The currency climbed 0.2 percent to NT$30.673, taking the week’s gain to 0.3 percent.
GDP rose 9.8 percent in the third quarter from a year earlier, the government reported after the close of trading on Friday.
“Taiwan’s economy is in very good shape and it will continue to attract hot money,” said Juan Hao-yun, a Taipei currency trader at King’s Town Bank (京城銀行). “This puts more pressure on the central bank to stem gains in the currency.”
The NT dollar has appreciated 5.5 percent this year as data show overseas funds bought US$6.3 billion more Taiwanese stocks than they sold during the period.
Elsewhere, the Philippine peso dropped 0.2 percent to 43.81 pesos. Indonesia’s rupiah lost 0.1 percent to Rp8,933 and the Indian rupee declined 0.9 percent to Rs45.19.
Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) has approved a capital budget of US$31.28 billion for production expansion to meet long-term development needs during the artificial intelligence (AI) boom. The company’s board meeting yesterday approved the capital appropriation plan for purposes such as the installation of advanced technology capacity and fab construction, the world’s largest contract chipmaker said in a statement. At an earnings conference last month, TSMC forecast that its capital expenditure for this year would be at the higher end of the US$52 billion to US$56 billion range it forecast in January in response to robust demand for 5G, AI and
PORTFOLIO REBALANCING: The adjustments in three global equity indices reflect rising investor appetite for semiconductor and artificial intelligence-related stocks Taiwan’s weighting in major global equity indices compiled by MSCI Inc is to rise modestly following the latest quarterly review, underscoring the market’s expanding role in emerging-market portfolios, as global investors continue to favor the nation’s technology sector. Taiwan’s weighting in the MSCI Emerging Markets Index is to increase by 0.30 percentage points to 23.76 percent, after the changes take effect at the close of the May 29 session. Its weighting in the MSCI All-Country Asia ex-Japan Index is to rise 0.37 percentage points to 27.16 percent, while that in the MSCI All Country World Index is to edge up slightly to
NEW MARKET: The partnership opens up India to the Dutch company, which already has a strong hold in the semiconductor market of South Korea, Taiwan and China ASML Holding NV entered into a partnership agreement with Tata Electronics Pvt Ltd aimed at ramping up India’s goal to develop domestic chip-manufacturing capabilities. The Dutch company’s technology would help power Tata Electronics’ planned 300 millimeter (mm) semiconductor foundry in Gujarat, according to a joint statement from the two companies on Saturday. The signing of a memorandum of understanding coincides with a visit by Indian Prime Minister Narendra Modi to the Netherlands, which is looking to deepen bilateral relations with New Delhi. ASML, whose top customers include Taiwan Semiconductor Manufacturing Co (台積電) and Samsung Electronics Co, makes lithography machines that can print
The Hsinchu County Government’s Labor Affairs Department yesterday said that it has received a plan from cosmetics brand Taiwan Shiseido Co (台灣資生堂) detailing mass layoffs at its plant in Hukou Township (湖口). While the labor authorities did not disclose the number of employees to be laid off, Japanese news media earlier in the day reported that the closure of the company’s factory in Hukou would result in 170 employees losing their jobs. Shiseido followed the law by reporting its layoff plan, the department said, adding that authorities would closely monitor negotiations between the management and affected employees and step in if any
RSS