The euro had its largest weekly advance against the greenback in six months as the US Federal Reserve signaled it was increasing likely to try to stimulate economic growth and amid growing optimism Europe’s leaders would contain the debt crisis.
The 17-nation shared currency gained for a second week as German Chancellor Angela Merkel said she wanted Greece to stay in the monetary union and that her nation was ready to help the Greek government take the needed steps to resolve its economic woes.
The euro on Friday snapped four days of gains after European Central Bank President Mario Draghi’s plan to buy government bonds was said to be held up pending a German court ruling. US Fed Chairman Ben Bernanke is to speak on Friday in Jackson Hole, Wyoming, where he may clarify his thinking on the need for stimulus.
“The Fed’s dovish tone definitely put people on watch,” Brian Kim, a currency strategist at Royal Bank of Scotland Group PLC in Stamford Connecticut, said in a telephone interview on Friday. “That meeting took place before the latest payroll data, before the latest consumer spending data. People said, well, we have to take that into consideration. It definitely puts more onus on the Jackson Hole speech.”
The euro rose 1.4 percent this week to US$1.2512, its largest weekly gain since the five days ended Feb. 24. The shared currency climbed to US$1.2590 on Thursday, the strongest since July 4. The euro gained 0.3 percent to ￥98.44, the second weekly advance. The dollar weakened 1.1 percent to ￥78.67.
Meanwhile, Australia’s dollar fell against 12 of its 16 major peers for the week as a report showed China’s manufacturing may contract at a faster pace.
“Australia’s dollar has really been underperforming today after weak Chinese data,” Eric Viloria, senior currency strategist at Gain Capital Group LLC in New York, said in a telephone interview on Thursday. “It’s looking a bit heavy here.”
The pound strengthened 0.8 percent this week to US$1.5820 and declined 0.8 percent to ￡0.7924 per euro.
Polytronics Technology Corp (聚鼎科技) yesterday announced that it is buying Henkel AG’s thermal clad dielectric material (TCLAD) business division for US$26 million as the Taiwanese firm aims to improve its technology, product portfolio and revenue performance. Polytronics, headquartered in the Hsinchu Science Park (新竹科學園區), is a supplier of protection components and heat dissipation materials. The firm entered the metallic heat-dissipation substrate market in 2007 and developed a unique solventless production process. Its board of directors approved signing an agreement with Henkel to acquire the German chemical firm’s TCLAD division in the US. The purchase includes all assets and business interests, including equipment,
SIZE MATTERS: Medium-sized hotels that do not have the support of parent groups are more vulnerable and are forced to take action, a REPro Knight Frank researcher said About 50 hotels across Taiwan are seeking to exit the market as they succumb to the bleak business outlook amid international travel restrictions imposed to combat the COVID-19 pandemic. Yomi Hotel (優美飯店) on Minsheng E Road, Sec 1, in Taipei is seeking to transfer ownership with an asking price of NT$950 million (US$32.15 million) and a pledge for a lease contract that guarantees a 3 percent return. The budget hotel, with room rates that start from NT$1,400 per night, maintains normal operations, but has been struggling since March, when the government placed restrictions on inbound and outbound travel. Occupancy rates for hotels in
‘SENSITIVE MARKETS’: The previously unannounced project would involve the company handing over control of data to a third party to sidestep privacy concerns Google has abandoned plans to offer a major new cloud service in China and other politically sensitive countries due in part to concerns over geopolitical tensions and the COVID-19 pandemic, two employees familiar with the matter said, revealing the challenges for US tech giants to secure business in those markets. In May, the search giant shut down the initiative, known as “Isolated Region” and which sought to address nations’ desires to control data within their borders, the employees said. The action was considered a “massive strategy shift,” said one of the employees, who added that Isolated Region had involved hundreds of employees
GOGOROS TO GO: The scooter maker’s CEO said that the electric vehicles ‘are the perfect complement to a program designed to stimulate the Taiwanese economy’ Minister of Economic Affairs Wang Mei-hua (王美花) yesterday announced a draw to encourage people to claim their Triple Stimulus Vouchers digitally. The prizes include movie tickets and 25 electric scooters donated by Gogoro Inc (睿能創意), Wang said. The Ministry of Economic Affairs said that it would hold a scooter draw every day for the next 10 days, beginning yesterday, after which there would be a draw every week for 15 weeks. The first winner was a Taiwan Cooperative Bank (合庫銀行) credit card user, the ministry said. The benefits of claiming the vouchers digitally extend beyond the draws, with many businesses offering special deals for