The New Taiwan dollar on Friday fell against the US dollar, shedding NT$0.060 to close at NT$30.210, sliding 0.6 percent from NT$30.040 a week earlier.
Turnover totaled US$1.525 billion during the trading session.
The greenback opened at NT$30.260 and moved between NT$30.125 and NT$30.290 before the close.
Elsewhere on Friday, the US dollar surged, posting sharp gains against the safe-haven Japanese yen as stock markets recovered globally and investors cheered efforts by governments and policymakers to address the economic fallout from the COVID-19 pandemic.
The US dollar posted its largest daily percentage gain against the yen since April 2013. It also benefited after US President Donald Trump on Friday declared a national emergency over the quickly spreading coronavirus, opening the door to more federal aid to combat the disease.
The greenback extended gains against several currencies after a blowout in swap spreads on Thursday signaled that investors want US dollars. While those spreads came in on Friday, the US dollar held strong.
However, market participants said that signs of US dollar funding stress persist and policymakers probably need to do more.
“Underlying concerns regarding the economic fallout from the coronavirus on credit markets broadly remain,” Toronto-based Bank of Nova Scotia chief foreign exchange strategist Shaun Osborne said.
“It may be tempting to look for signs of a low in global stocks, but with the underlying issue — the coronavirus — still unchecked, we think that is premature at this point,” he said.
The cost of raising US dollar funds in the cross-currency euro swap market on Friday widened again after narrowing the day before on the US Federal Reserve’s announcement that it would inject more liquidity into the banking system, he added.
Wider spreads in the cross-currency basis swap market suggested increased signs of US dollar shortage for corporates seeking funding.
In afternoon trading, the US dollar gained 3.2 percent against the yen to ￥108.03.
Wells Fargo & Co said that it had further upgraded its forecast for the yen against the US dollar as the risk of financial turmoil remains, adding that the greenback would fall to less than ￥100.
“The rate cuts and other policy actions from global central banks have done little to quell market panic. That may be due to the fact that fiscal policymakers have generally been slow to act,” Wells Fargo said in a research note.
The US dollar also rallied versus another safe haven, the Swiss franc, rising 0.6 percent to SF0.9496.
Against a basket of currencies, the US dollar rose 1 percent to 98.467.
The euro nursed losses, despite European Central Bank (ECB) policymakers’ efforts to reassure markets. European assets were on Thursday sold off after investors were underwhelmed by the ECB’s stimulus measures.
The euro was last down 0.7 percent at US$1.1108.
The ECB on Thursday announced a stimulus package that provides loans to banks with rates as low as minus-0.75 percent and increases bond purchases, but it did not join its counterparts in the US and the UK in cutting rates.
The British pound also plunged 2.2 percent against the US dollar to US$1.2290.
The greenback’s rebound this week reflects its role as the world’s most liquid currency, which investors seek in times of stress.
The Fed meets next week and many analysts now expect it to chop its own target policy rate, quite possibly to zero, and give markets new guidance about how it plans to combat the economic fallout from the coronavirus.
TECH TITANS: Amazon’s latest chip joins Google in competing for the 90 percent market share held by Nvidia, which claims it is ‘a generation ahead of the industry’ Amazon Web Services (AWS) on Tuesday launched its in-house-built Trainium3 artificial intelligence (AI) chip, marking a significant push to compete with Nvidia Corp in the lucrative market for AI computing power. The move intensifies competition in the AI chip market, where Nvidia dominates with an estimated 80 to 90 percent market share for products used in training large language models that power the likes of ChatGPT. Google last week caused tremors in the industry when it was reported that Facebook-parent Meta Platforms Inc would employ Google AI chips in data centers, signaling new competition for Nvidia. This followed the release last month of
INSULATED: The company said it is less exposed to global complications, as it has built a strong footprint worldwide, and has multiple sources of rare earths and raw minerals Merck Group yesterday said it would ramp up production next year at its new flagship facility in Kaohsiung’s Lujhu District (路竹) to satisfy growing demand for advanced semiconductor materials and specialty gases, and to address supply resilience issues amid mounting geopolitical risks. Merck made the remarks during a news conference before the inauguration of its 500 million euros (US$582.1 million) facility, which is also to supply other markets in the Asia-Pacific region, it said. Merck executive board deputy chair and electronics CEO Kai Beckmann told reporters the company adopted a “local-for-local” strategy about seven years ago to address the cycle time of
Two companies wholly owned by the daughter of the founder of Hon Hai Precision Industry Co (鴻海精密) on Monday reported to the Taiwan Stock Exchange that they would dispose of all of the Hon Hai shares they hold. In filings with the exchange, Hong Wei Investment Co (鋐維) said it would sell the 2.771 million Hon Hai shares it holds and Frontier Investment Corp (承鋒投資) said it would sell its 2.409 million Hon Hai shares from tomorrow until Jan. 3 next year. The two companies are wholly owned and chaired by Shirley Gou (郭曉玲), the eldest daughter of Hon Hai founder Terry
RIDING THE WAVE: The race to build AI infrastructure has lifted the valuations of top memory makers, such as Micron, amid dwindling inventories and supply challenges Micron Technology Inc is to spend ￥1.5 trillion (US$9.6 billion) to build a plant in western Japan to make memory chips for artificial intelligence (AI) applications, the Nikkei reported on Saturday. The move comes as Micron seeks to diversify advanced chip production outside of Taiwan, the Nikkei article said, citing people familiar with the matter. The new factory will manufacture high-bandwidth memory (HBM) chips, a key component for working with AI processors such as those made by Nvidia Corp, the report said. Micron would build the facility within the compound of its Hiroshima plant, starting in May next year, with plans to launch
RSS