The US dollar edged higher on Friday to post a weekly gain, supported by upbeat retail sales data boosting expectations that economic growth accelerated in the second quarter.
The US dollar index, which tracks the greenback versus a basket of six currencies, rose 0.1 percent to 92.71, up 0.63 percent from a week earlier — its biggest weekly rise in about a month.
US retail sales unexpectedly increased last month as demand for goods remained healthy even as spending was shifting back to services.
Photo: Reuters
Solid US data and a shift in interest rate expectations after the US Federal Reserve last month flagged sooner-than-expected hikes in 2023 have helped lift the US dollar in the past few weeks and made investors nervous about shorting it.
Friday’s gains for the greenback came despite Fed Chairman Jerome Powell on Thursday reiterating that rising inflation was likely to be transitory and that the US central bank would continue to support the economy.
“The data was consistent with the economy making substantial strides and cements expectations of very robust second quarter growth of around 10 percent,” said Joe Manimbo, a senior market analyst at Western Union Business Solutions in Washington.
“A backdrop of rising inflation, falling unemployment and a resilient consumer makes a compelling case for the Fed to unwind stimulus,” Manimbo said.
In Taipei, the New Taiwan dollar dropped against the US dollar on Friday, losing NT$0.113 to close at NT$28.005, but gained 0.29 percent from a week earlier. Turnover totaled US$1.208 billion during the trading session.
The New Zealand dollar gained 0.37 percent after data showed that New Zealand’s consumer prices rose far faster than expected, prompting some in the market to bet on a rate hike as soon as next month.
Sterling edged lower against the US dollar as investors sought safety in the greenback amid concerns over rising COVID-19 cases globally.
The Canadian dollar climbed 0.1 percent, helped by upbeat domestic wholesale trade data, a day after touching a near three-month low against its US counterpart.
Cryptocurrencies found support after recent turbulence, with bitcoin about flat on the day at US$31,835.59.
Additional reporting by CNA, with staff writer
The seizure of one of the largest known mercury shipments in history, moving from mines in Mexico to illegal Amazon gold mining zones, exposes the wide use of the toxic metal in the rainforest, according to authorities. Peru’s customs agency, SUNAT, found 4 tonnes of illegal mercury in Lima’s port district of Callao, according to a report by the non-profit Environmental Investigations Agency (EIA). “This SUNAT intervention has prevented this chemical from having a serious impact on people’s health and the environment, as can be seen in several areas of the country devastated by the illegal use of mercury and illicit activities,”
NEW PRODUCTS: MediaTek plans to roll out new products this quarter, including a flagship mobile phone chip and a GB10 chip that it is codeveloping with Nvidia Corp MediaTek Inc (聯發科) yesterday projected that revenue this quarter would dip by 7 to 13 percent to between NT$130.1 billion and NT$140 billion (US$4.38 billion and US$4.71 billion), compared with NT$150.37 billion last quarter, which it attributed to subdued front-loading demand and unfavorable foreign exchange rates. The Hsinchu-based chip designer said that the forecast factored in the negative effects of an estimated 6 percent appreciation of the New Taiwan dollar against the greenback. “As some demand has been pulled into the first half of the year and resulted in a different quarterly pattern, we expect the third quarter revenue to decline sequentially,”
DIVERSIFYING: Taiwanese investors are reassessing their preference for US dollar assets and moving toward Europe amid a global shift away from the greenback Taiwanese investors are reassessing their long-held preference for US-dollar assets, shifting their bets to Europe in the latest move by global investors away from the greenback. Taiwanese funds holding European assets have seen an influx of investments recently, pushing their combined value to NT$13.7 billion (US$461 million) as of the end of last month, the highest since 2019, according to data compiled by Bloomberg. Over the first half of this year, Taiwanese investors have also poured NT$14.1 billion into Europe-focused funds based overseas, bringing total assets up to NT$134.8 billion, according to data from the Securities Investment Trust and Consulting Association (SITCA),
Taiwan’s property transactions in the first half of this year fell 26.4 percent year-on-year to about 130,000 units, as credit controls and mortgage restrictions dampened demand, data from the Ministry of the Interior showed yesterday. Keelung saw the steepest decline, with transactions plummeting 45.6 percent to just 2,041 units — the lowest since the ministry began its survey in 2006. In contrast, Miaoli County was the only region to experience year-on-year growth, with transactions rising 2.4 percent to 3,229 units. Great Home Realty Co (大家房屋) attributed the increase in deals in Miaoli, particularly Jhunan (竹南) and Toufen (頭份) townships, to spillover demand
RSS