The US dollar on Friday rose against a basket of currencies for its first weekly increase in three, prompted by hopes of progress in US-China trade talks and that the US Federal Reserve would not lower rates aggressively.
Sterling retreated from a two-month high versus the greenback after Irish Minister for Foreign Affairs and Trade Simon Coveney said that London and the EU were not yet close to a Brexit deal.
US and Chinese deputy trade negotiators are set to continue talks that began on Thursday in an effort to lay the groundwork for high-level discussions early next month that would determine whether the world’s biggest economies can reach a trade deal.
While tariffs and worries about protracted supply chain disruption have hampered global business activity, the US economy is still faring relatively well, analysts said.
“The US economy is clearly doing better than anyone else,” FX Street senior analyst Joseph Trevisani said in New York. “I’m still in the stronger dollar camp.”
With housing starts at a 12-year high and factory output rebounding last month, the longest US expansion on record seems to have more legs, he said.
In late US trading, an index that tracks the US dollar against a basket of six major currencies was up 0.24 percent at 98.51 for a weekly gain of about 0.25 percent.
The euro fell 0.2 percent on the day to US$1.10175, while the greenback slipped 0.37 percent to ￥107.645.
Against a favorable economic backdrop, the Fed on Wednesday lowered key lending rates by a quarter point, but signaled a higher bar to further reductions in borrowing costs.
On Friday, Fed officials delivered different assessments on the economy and what should be done about it.
Interest rates futures implied traders saw a 63 percent chance of another rate cut by the end of this year, compared with 69 percent late on Thursday, CME Group’s FedWatch program showed.
Meanwhile, sterling was briefly the biggest gainer overnight against the US dollar after European Commission President Jean-Claude Juncker late on Thursday said that he thought Brussels could reach an agreement with Britain on its departure from the EU.
Sterling’s gains faded after the comments by Coveney on a Brexit deal and a Financial Times report that British Prime Minister Boris Johnson had told colleagues that he did not expect to be able to reach a full “legally operable” deal covering the Irish border at a meeting of EU leaders.
The pound was down 0.37 percent at US$1.2476 after touching a two-month high at US$1.2582.
It reached a four-month high of ￡0.87875 per euro before easing to ￡0.8826, down 0.15 percent on the day.
In Taipei, the New Taiwan dollar on Friday gained NT$0.026 against the US dollar to close at NT$30.980, gaining 0.2 percent from a close of NT$31.055 on Sept. 12.
Turnover totaled US$1.07 billion. The greenback opened at NT$31.030, moving between NT$30.905 and NT$31.040 before the close.
Additional reporting by staff writer
Softbank Group Corp plans to keep a stake in the chip designer Arm Ltd, even if it sells a partial interest to Nvidia Corp, the Nikkei reported. The companies are negotiating terms, the newspaper reported, citing sources. Softbank might take a stake in Nvidia after it buys Arm, the report said. Nvidia and Arm might also merge through a share swap, and Softbank would become a major shareholder in the combined company, it said. The two parties aim to reach a deal in the next few weeks, the sources said, asking not to be identified because the information is private. Nvidia is the
MOVING FROM CHINA? The article did not name the company, but Foxconn, Wistron and Pegatron were among firms chosen for a production-linked incentive plan in India An Apple Inc vendor is looking at shifting six production lines to India from China, which could result in US$5 billion of iPhone exports from the South Asian nation, the Times of India reported, citing people familiar with the matter who it did not identify. The establishment of the facility would create about 55,000 jobs over about a year, the newspaper reported, not naming the Apple vendor. It would also cater to the domestic market and expand operations to include tablets and laptops, the newspaper reported. Samsung Electronics Co and Apple’s assembly partners are among 22 companies that have pledged 110 billion
Gold surged to a fresh record on Friday, fueled by US dollar weakness and low interest rates, while silver headed for its best month since 1979. Spot bullion is up more than 10 percent this month, as US real yields lingered near record lows. While the ferocity of rallies in gold and silver cooled in the middle of the week, most market watchers predict there might be more gains ahead. Both metals have added about 30 percent this year, with gold and silver exchange-traded funds boosting holdings to a record, as concern about the fallout from the COVID-19 pandemic fuels demand for
‘ONE-STOCK SHOW’: Turnover hit an all-time high as TSMC continued to determine the local market’s direction and surpassed Visa in market capitalization The TAIEX early yesterday hit an all-time intraday high on the back of soaring Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) shares, before tumbling back to the previous day’s close as the contract chipmaker could not single-handedly prop up the index. The TAIEX rose more than 400 points in the first 20 minutes of trading to hit a record 13,031.7 points, but later pared its gains to close down 0.01 percent at 12,586.73. Turnover was NT$343.252 billion (US$11.63 billion), the highest in the Taiwan Stock Exchange’s history. TSMC continued to dictate the market’s direction, as its early surge by the daily