The New Taiwan dollar on Friday fell against the US dollar, sliding NT$0.059 to close at NT$30.009, down 0.2 percent from NT$29.950 a week earlier.
Turnover totaled US$1.03 billion during the trading session.
The greenback opened at NT$29.970, and moved between NT$29.935 and NT$30.010 before the close.
Elsewhere on Friday, the US dollar rose against a basket of currencies, helped by safe-haven demand as a move by Beijing to impose a new security law on Hong Kong further strained fast-deteriorating US-China relations.
China on Friday unveiled details of its plan to impose a national security law in Hong Kong that could see Chinese intelligence agencies set up bases in the global financial hub, raising the prospect of more unrest there after last year’s pro-democracy protests.
Reports of the law on Thursday drew fire from US President Donald Trump, sapping investors’ appetite for riskier assets and driving the euro, offshore yuan and commodity currencies lower on Friday.
US-China relations have worsened during the COVID-19 pandemic. The US has ramped up its criticism of China, blaming it for the spread of the novel coronavirus, which originated in central Wuhan, China.
“It’s definitely a risk-off kind of day,” Silicon Valley Bank senior foreign exchange trader Minh Trangsaid in Santa Clara, California.
“These types of headlines certainly give a little bit of a jolt to the overall market, and you are seeing the result of that today,” he said.
The US Dollar Currency Index, which measures the greenback’s strength against six other major currencies, was up 0.4 percent at 99.789. For the week, the index was down about 0.6 percent.
The euro slipped 0.5 percent against the greenback.
“Safe-haven [US] dollar buying has been behind the move,” Action Economics LLC managing director of global currency analysis Ronald Simpson said in a note.
The offshore Chinese yuan hit a two-month low of US$7.1645. The onshore yuan hit eight-month lows.
The risk-sensitive Australian dollar was 0.5 percent lower against the greenback, while the New Zealand dollar also fell 0.5 percent.
Sterling slipped 0.4 percent against the US dollar as fresh data showed that British retail sales dropped by a record 18 percent as the pandemic hammered the economy.
A drop in oil prices on Friday due to the rising US-China tensions and doubts about the pace of demand recovery from the pandemic hurt the currencies of oil-producing nations.
The Canadian dollar weakened about 0.2 percent against its US counterpart as oil prices fell and Canadian data showed a record decline in retail sales, with the loonie giving back some of this week’s rally.
The Norwegian crown fell about 0.8 percent against the US dollar.
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