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.
Medigen Vaccine Biologics Corp (高端疫苗) yesterday reported higher neutralizing antibody levels in people who were given its COVID-19 vaccine as a booster after two AstraZeneca doses, the company said. In a trial of 200 participants who received Medigen’s COVID-19 vaccine, neutralizing antibodies against the Omicron variant of SARS-CoV-2 grew by 5.7 times one month after being administered, Taoyuan General Hospital said. Medigen said that the results have been submitted to medRxiv, an online platform for researchers to share complete but unpublished papers. Another trial conducted by National Taiwan University Hospital showed that among 45 participants who received three doses of the Medigen vaccine,
BEATING EXPECTATIONS: With electric vehicles and the metaverse on the horizon, the company predicts a solid first quarter as customers stockpile inventories Key iPhone assembler Hon Hai Precision Industry Co (鴻海精密) could achieve an “unprecedented” performance in the first quarter, chairman Young Liu (劉揚偉) said. “Our performance in the first quarter might surpass how we fared in the past few years, and it is likely that some staff at key sites might only get two days off during the Lunar New Year holiday,” Liu said in prepared remarks for the company’s annual workers’ party yesterday. Manufacturers around the world are racing to build up inventory out of fear that outbreaks of the Omicron variant of SARS-CoV-2 and other uncertainties could further disrupt their supply
The US Department of Commerce on Tuesday said that a global survey of semiconductor chip producers and users shows a shortage will persist, sparked primarily by wafer production capacity constraints. The voluntary survey of 150 companies last fall in the supply chain confirmed “there is a significant, persistent mismatch in supply and demand for chips, and respondents did not see the problem going away in the next six months.” US Secretary of Commerce Gina Raimondo told reporters that the department “in a few instances didn’t really get what we needed and we’re going to go company by company and do personal engagement
EV ‘ECOSYSTEM’: The firms have agreed to work with the Indonesian government and others in creating infrastructure for the country’s growing EV market Hon Hai Precision Industry Co (鴻海精密) yesterday made a major step toward a foothold in the world’s electric vehicle (EV) market by signing partnership agreements with the Indonesian government and local energy and battery companies, in which local EV supplier Gogoro Inc (睿能創意) would also take part. Hon Hai, the world’s largest electronics manufacturing company, signed a memorandum of understanding with the Indonesian Ministry of Investment, battery maker PT Industri Baterai Indonesia, PT Indika Energy and Gogoro to build a sustainable energy ecosystem in Indonesia, a joint statement said. The government-level deal came after Hon Hai last year unveiled its first EV