The US dollar on Friday gained against the euro for the first week since the middle of June after data showed a strong uptick in US business activity, while the single currency was held down as this month’s batch of European business surveys pointed to a stuttering economic recovery.
US business activity this month snapped back to the highest since early last month as companies in the manufacturing and services sectors saw a resurgence in new orders even as new COVID-19 cases remain stubbornly high across the country.
“The Markit PMI [purchasing managers’ index] flash readings show the US is outperforming Europe,” Oanda Corp senior market analyst Edward Moya said.
The data contrasted with weakness in the eurozone, as the pent-up demand unleashed last month by the easing of COVID-19 lockdowns dwindled.
“Clearly the PMI numbers this morning suggest that Europe is losing a little momentum here and that we’re seeing some turbulence in other areas of the global economy. So that is weighing on the performance gap between the US and its major counterparts,” Cambridge Global Payments chief market strategist Karl Schamotta said.
The US dollar index against a basket of major currencies rose 0.4 percent to 93.24, rising 0.1 percent for the week.
In Taipei on Friday, the New Taiwan dollar rose against the greenback, gaining NT$0.010 to close at NT$29.512, rising 0.1 percent from last week.
The euro dipped to a one-week low of US$1.175 against the greenback earlier, before rising back to US$1.179, down 0.61 percent on the day and inching down 0.08 percent for the week.
The greenback escaped a ninth consecutive weekly decline.
The recovery in the US dollar began on Wednesday after the US central bank’s rate-setting Federal Open Market Committee released minutes from its last meeting, the tone of which was more dovish than expected.
The minutes prompted US dollar bears to buy into the heavily shorted currency, fueling its biggest one-day surge in more than two months.
“You’re seeing a bit of an unwind in the short dollar trade that had gained so much momentum in the last couple months,” Schamotta said.
Additional reporting by CNA, with staff writer
With this year’s Semicon Taiwan trade show set to kick off on Wednesday, market attention has turned to the mass production of advanced packaging technologies and capacity expansion in Taiwan and the US. With traditional scaling reaching physical limits, heterogeneous integration and packaging technologies have emerged as key solutions. Surging demand for artificial intelligence (AI), high-performance computing (HPC) and high-bandwidth memory (HBM) chips has put technologies such as chip-on-wafer-on-substrate (CoWoS), integrated fan-out (InFO), system on integrated chips (SoIC), 3D IC and fan-out panel-level packaging (FOPLP) at the center of semiconductor innovation, making them a major focus at this year’s trade show, according
SEMICONDUCTOR SERVICES: A company executive said that Taiwanese firms must think about how to participate in global supply chains and lift their competitiveness Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) yesterday said it expects to launch its first multifunctional service center in Pingtung County in the middle of 2027, in a bid to foster a resilient high-tech facility construction ecosystem. TSMC broached the idea of creating a center two or three years ago when it started building new manufacturing capacity in the US and Japan, the company said. The center, dubbed an “ecosystem park,” would assist local manufacturing facility construction partners to upgrade their capabilities and secure more deals from other global chipmakers such as Intel Corp, Micron Technology Inc and Infineon Technologies AG, TSMC said. It
DEBUT: The trade show is to feature 17 national pavilions, a new high for the event, including from Canada, Costa Rica, Lithuania, Sweden and Vietnam for the first time The Semicon Taiwan trade show, which opens on Wednesday, is expected to see a new high in the number of exhibitors and visitors from around the world, said its organizer, SEMI, which has described the annual event as the “Olympics of the semiconductor industry.” SEMI, which represents companies in the electronics manufacturing and design supply chain, and touts the annual exhibition as the most influential semiconductor trade show in the world, said more than 1,200 enterprises from 56 countries are to showcase their innovations across more than 4,100 booths, and that the event could attract 100,000 visitors. This year’s event features 17
EXPORT GROWTH: The AI boom has shortened chip cycles to just one year, putting pressure on chipmakers to accelerate development and expand packaging capacity Developing a localized supply chain for advanced packaging equipment is critical for keeping pace with customers’ increasingly shrinking time-to-market cycles for new artificial intelligence (AI) chips, Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) said yesterday. Spurred on by the AI revolution, customers are accelerating product upgrades to nearly every year, compared with the two to three-year development cadence in the past, TSMC vice president of advanced packaging technology and service Jun He (何軍) said at a 3D IC Global Summit organized by SEMI in Taipei. These shortened cycles put heavy pressure on chipmakers, as the entire process — from chip design to mass
RSS