The US dollar was slightly higher on Friday, coming off its strongest level for the day, as risk appetite returned to the market in the afternoon with US equities recovering from early losses and Treasury yields extending their rise.
Investors also consolidated gains made on other currencies at the expense of the US dollar ahead of a long weekend in the US.
Financial markets are closed tomorrow for Presidents Day.
The outlook for the US dollar remained lower, according to Marshall Gittler, head of investment research at BDSwiss Group.
The greenback is “considered the safest of safe havens and tends to fall when people are not looking for safe havens,” Gittler said. “With markets rallying and the US Fed on hold indefinitely, I expect the dollar to be widely used as a funding currency, pushing its value down.”
In afternoon trading, the dollar index rose 0.1 percent to 90.494 after subdued volumes in Asia because of the Lunar New Year.
On the week, the index fell 0.6 percent, its first losing week in three — in what ING Groep NV analysts described as a “consolidative mood” amid uncertainty about the pace of the US economic recovery. Weaker-than-expected weekly US jobless claims data on Thursday added to concerns the US dollar’s previous rally had priced in too fast an economic rebound.
The US dollar was up 0.2 percent against the yen at ￥104.97. It fell 0.4 percent on the week, its steepest fall since mid-December.
The euro slipped 0.1 percent to US$1.2116, but on the week, the single European currency rose 0.5 percent. The British pound rose 0.2 percent versus the US dollar to US$1.3848, despite data showing Britain’s economy suffered a record slump last year, although it did grow in the final quarter.
The Australian dollar, a proxy for risk appetite, rallied from lows to trade flat on the day at US$0.7753. The New Zealand dollar likewise cut its losses against the greenback.
Alphabet Inc’s Google on Tuesday announced plans to buy a New York office building for US$2.1 billion, confirming its push into the US’ largest city despite the COVID-19 teleworking trend. This is the largest real-estate purchase in the US for an office building since the beginning of the global spread of COVID-19, the Wall Street Journal quoted Real Capital Analytics as saying. Google already rents the premises in Manhattan, which are located on the site of a former railroad terminal in the Hudson Square neighborhood. The Silicon Valley giant envisions a campus with a total surface area of 160,000m2 by mid-2023
‘CORE VALUES’: The contract chipmaker did not specify why the employees were dismissed, but media reports said they had leaked information about customer orders Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) has fired seven of its employees for violating the company’s “core values,” the world’s largest contract chipmaker said yesterday. While the company did not disclose exactly why it fired the seven employees, local media reports earlier in the day said that the employees had leaked confidential information about customer orders. In a statement, the company said that it fired the seven at once, adding that it released an internal notice last week to inform the entire company of the move ahead of the four-day Mid-Autumn Festival holilday, which ended on Tuesday. TSMC said it fired the seven
Cash-strapped developer China Evergrande Group (恆大集團) has begun repaying investors in its wealth management products with real estate, said Hengda Real Estate Group Co Ltd (恆大地產), its main unit. Evergrande, with more than US$300 billion in liabilities, is in the throes of a liquidity crisis that has left it racing to raise funds to pay its many lenders and suppliers. It has a bond interest payment of US$83.5 million due on Thursday. The company said on WeChat on Saturday that investors interested in redeeming wealth management products for physical assets should contact their investment consultants or visit local offices. Financial news outlet Caixin on
MILD ADJUSTMENT: Two previous efforts failed to curtail mortgage financing, although the new measures should not affect property prices, the central bank governor said The central bank yesterday tightened credit controls for second-home mortgages in specific areas and purchases of plots of land, especially in industrial parks. However, the nation’s top monetary policymaker kept its policy rate at a record-low 1.125 percent for the sixth consecutive quarter, despite revising up its GDP growth forecast for this year from 5.08 percent to 5.75 percent. “Board members factored in economic uncertainty at home and around the world,” central bank Governor Yang Chin-long (楊金龍) said, adding that growing inflationary pressure was a temporary phenomenon induced by bad weather and a low base effect for oil prices. International fuel price increases