The US dollar on Friday posted a second week of gains after a turbulent few days when currencies were buffeted by shifting risk appetite, with the market’s focus on next week’s US Federal Reserve meeting.
However, some analysts wondered whether the US dollar’s recent rally might be losing momentum.
The US dollar index, which measures the greenback against a basket of six major currencies, rose slightly for the day to 92.91. For the week, added 0.2 percent, after rising 0.6 percent previously.
However, that was off a three-and-a-half-month high of 93.194 hit on Wednesday, after strong Wall Street earnings helped investors regain some confidence amid earlier worries that the Delta variant of SARS-CoV-2 could derail the global recovery.
In Taipei, the New Taiwan dollar fell against the greenback, losing NT$0.010 to close at NT$28.028, little changed from last week’s NT$28.005.
Risk appetite among investors remained high on Friday, with US stocks rising, US Treasuries selling off, most commodity currencies well-bid on the day and the greenback off its peaks.
“The dollar looks tired especially after the rally of the last few weeks,” said Erik Nelson, macro strategist at Wells Fargo Securities in New York. “It seems to be running out of steam both from a fundamental and technical perspective.”
So far this month, the US dollar has gained 0.6 percent, after rising 2.8 percent last month.
However, Nelson was not convinced that the dollar could hold its gains in the coming weeks given the decline in US Treasury yields.
Since the beginning of this month, US benchmark 10-year Treasury yields have lost 16 basis points, on track for their largest monthly fall since March last year.
Against the safe-harbor yen, the US dollar rose 0.3 percent to ￥110.53.
The Australian dollar — viewed as a proxy for risk appetite — slid 0.1 percent to US$0.7374, posting a fourth straight weekly loss. With half the Australian population under lockdown, economists said the country’s central bank could increase stimulus rather than decrease it at its next policy meeting.
Additional reporting by CNA, with staff writer
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
WORK SUSPENDED: A Taiwanese maker of golf club heads said that it expects the situation to normalize next quarter, thanks to rising vaccination rates in Vietnam Several Taiwanese manufacturers in Vietnam have been struggling with production problems over the past few weeks, as the country’s south remains under a COVID-19 lockdown. Pou Chen Corp (寶成工業), an original design manufacturer for international footwear brands, said that production at its factory in Ho Chi Minh City has ground to a halt, so it expects a significant drop in revenue at that factory from July to last month. If the COVID-19 outbreak in southern Vietnam subsides in the fourth quarter of this year and employees are allowed to return to work, they might be able to put in some overtime,
‘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
Medigen Vaccine Biologics Corp’s (高端疫苗) board of directors yesterday approved a proposal to conduct a phase 3 clinical trial of its COVID-19 vaccine in Europe, it said yesterday. The final stage of human tests, if approved by the European Medicines Agency (EMA), would mark a big milestone in the COVID-19 vaccine development of Medigen, which has so far completed phase 1 and 2 clinical trials in Taiwan and is conducting a small phase 3 clinical trial in Paraguay. Medigen in July consulted the EMA about conducting clinicial trials of its vaccine and it received a “positive response” from the agency, the company