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
NEW MARKET: The partnership opens up India to the Dutch company, which already has a strong hold in the semiconductor market of South Korea, Taiwan and China ASML Holding NV entered into a partnership agreement with Tata Electronics Pvt Ltd aimed at ramping up India’s goal to develop domestic chip-manufacturing capabilities. The Dutch company’s technology would help power Tata Electronics’ planned 300 millimeter (mm) semiconductor foundry in Gujarat, according to a joint statement from the two companies on Saturday. The signing of a memorandum of understanding coincides with a visit by Indian Prime Minister Narendra Modi to the Netherlands, which is looking to deepen bilateral relations with New Delhi. ASML, whose top customers include Taiwan Semiconductor Manufacturing Co (台積電) and Samsung Electronics Co, makes lithography machines that can print
TECH RELIANCE: Growth is increasingly reflecting an unequal K-shaped distribution, where technology sectors outperform and other industries struggle, an expert said Standard Chartered Bank has significantly raised its forecast for Taiwan’s economic growth to 9.5 percent this year, up from 7.6 percent previously, citing surging artificial intelligence (AI) demand driving exports, semiconductor production and investment. The upgrade reflects a sustained AI supercycle that continues to fuel demand for advanced chips and technology infrastructure, which form the backbone of Taiwan’s exports, the bank said in a report this week. “We raise our 2026 growth forecast to reflect a much stronger-than-expected first-quarter GDP figure,” Standard Chartered senior economist for greater China and Asia Tommy Wu (胡東安) said in the report. Driven largely by a 35.3 percent
After several years flying high as Asia’s best Nvidia Corp proxy, Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) is increasingly vying with other artificial intelligence (AI) stocks for investor attention. Stock traders are chasing a wider array of beneficiaries as mainstream usage of AI creates demand for hardware beyond the most-advanced chips TSMC makes for Nvidia. Subthemes from the deepening memory crunch to advances in robotics are also luring bids. At the same time, investment caps on single stocks are pushing funds to diversify, while retail investors long familiar with TSMC through its US depositary receipts are being offered a broader set of
Two of Taiwan’s international carriers, Starlux Airlines Co (星宇航空) and EVA Airways Corp (長榮航空), have retained the five-star airline rating awarded by international airline review organization Skytrax. Starlux was awarded the distinction for a second consecutive year, while EVA Air received it for the 11th straight year, Skytrax said in statements released yesterday and on Thursday last week, respectively. The five-star rating is considered one of the airline industry's highest honors and is awarded following professional audits of airline product and frontline service standards, Skytrax said. The ratings are based on in-depth assessments using unified global quality standards rather than customer review scores
RSS