The US Dollar Index gained for a fifth straight week, its longest rally since June, as employers added more jobs last month than forecast, signaling better economic prospects for the US compared with other developed nations.
The index, Intercontinental Exchange Inc’s benchmark that tracks the greenback against the currencies of six major US trading partners, reached its highest level since Aug. 3. It added 0.5 percent to 82.715. The weekly gains streak was the longest since the five days ended June 1.
The euro touched its lowest level versus the greenback since December last year as European Central Bank policymakers said the region’s economy may shrink more than estimated and reduced their inflation forecast. The yen fell to the weakest level versus the dollar since 2009 as a report showed Japan’s current account deficit widened and the incoming central bank governor endorsed buying longer-maturity bonds. A report on Friday may show US consumer prices rose at a faster pace last month.
The US dollar rose 2.6 percent this week to ￥96 in New York, touching the highest level since Aug. 12, 2009. It gained 0.1 percent to US$1.3005 per euro, the fifth straight advance. The 17-nation currency appreciated 2.5 percent to ￥124.86.
The yen weakened on Friday as the Japanese Ministry of Finance said the deficit in the current account, the widest measure of trade, increased to ￥364.8 billion (US$3.8 billion) in January, up from ￥264.1 billion a month ago.
Japan’s currency has slumped 9.6 percent versus the US dollar this year as Japanese Prime Minister Shinzo Abe pushed the central bank to add to stimulus to beat deflation. Haruhiko Kuroda, Abe’s pick to become the next Bank of Japan (BOJ) governor, told lawmakers this week the scale of the BOJ’s asset purchases was insufficient to achieve its target of 2 percent inflation.
The pound declined to a two-and-a-half year low versus the dollar and dropped against the euro this week amid investor concern that UK policy makers are struggling to avoid an unprecedented triple-dip recession.
To many, Tatu City on the outskirts of Nairobi looks like a success. The first city entirely built by a private company to be operational in east Africa, with about 25,000 people living and working there, it accounts for about two-thirds of all foreign investment in Kenya. Its low-tax status has attracted more than 100 businesses including Heineken, coffee brand Dormans, and the biggest call-center and cold-chain transport firms in the region. However, to some local politicians, Tatu City has looked more like a target for extortion. A parade of governors have demanded land worth millions of dollars in exchange
Hong Kong authorities ramped up sales of the local dollar as the greenback’s slide threatened the foreign-exchange peg. The Hong Kong Monetary Authority (HKMA) sold a record HK$60.5 billion (US$7.8 billion) of the city’s currency, according to an alert sent on its Bloomberg page yesterday in Asia, after it tested the upper end of its trading band. That added to the HK$56.1 billion of sales versus the greenback since Friday. The rapid intervention signals efforts from the city’s authorities to limit the local currency’s moves within its HK$7.75 to HK$7.85 per US dollar trading band. Heavy sales of the local dollar by
Taiwan Semiconductor Manufacturing Co’s (TSMC, 台積電) revenue jumped 48 percent last month, underscoring how electronics firms scrambled to acquire essential components before global tariffs took effect. The main chipmaker for Apple Inc and Nvidia Corp reported monthly sales of NT$349.6 billion (US$11.6 billion). That compares with the average analysts’ estimate for a 38 percent rise in second-quarter revenue. US President Donald Trump’s trade war is prompting economists to retool GDP forecasts worldwide, casting doubt over the outlook for everything from iPhone demand to computing and datacenter construction. However, TSMC — a barometer for global tech spending given its central role in the
An Indonesian animated movie is smashing regional box office records and could be set for wider success as it prepares to open beyond the Southeast Asian archipelago’s silver screens. Jumbo — a film based on the adventures of main character, Don, a large orphaned Indonesian boy facing bullying at school — last month became the highest-grossing Southeast Asian animated film, raking in more than US$8 million. Released at the end of March to coincide with the Eid holidays after the Islamic fasting month of Ramadan, the movie has hit 8 million ticket sales, the third-highest in Indonesian cinema history, Film
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