The US dollar on Friday rose in line with higher US Treasury yields, as investors focused on when the US Federal Reserve is likely to begin reducing its asset purchases.
The New Taiwan dollar yesterday dropped against the US dollar on a make-up Saturday for the Mid-Autumn Festival holiday, losing NT$0.020 to close at NT$27.710, down 0.03 percent from a week earlier.
The greenback has risen from a one-month low on Friday last week after jobs data for last month showed that jobs growth slowed, while wage inflation rose more than expected.
However, the currency has not yet been able to establish a strong trend, as investors wait for new clues about when the Fed is likely to begin paring its bond purchases and, eventually, increase rates.
“That to me is the most important thing, is when does the Fed hike rates, and unfortunately we may not know that for a little while,” said Erik Nelson, a macro strategist at Wells Fargo & Co in New York.
Cleveland Fed President Loretta Mester on Friday said that she would still like the central bank to begin tapering asset purchases this year, joining a chorus of policymakers making it clear that their plans to begin scaling back support were not derailed by weaker jobs growth last month.
Fed officials are grappling with rising price pressures while jobs growth remains below their targets.
Data on Friday showed that US producer prices increased solidly last month, indicating that high inflation is likely to continue for a while, with supply chains remaining tight as the COVID-19 pandemic drags on.
The Wall Street Journal wrote that Fed officials would seek to make an agreement at the Fed’s meeting this month to begin paring bond purchases in November.
The US dollar index gained 0.17 percent to 92.64, up 0.66 percent from a week earlier.
The US currency had dipped earlier on Friday on improving risk sentiment on news that US President Joe Biden and Chinese leader Xi Jinping (習近平) spoke for the first time in seven months.
The US dollar was last down 0.13 percent to 6.4419 yuan.
The euro on Friday fell 0.07 percent to US$1.1816, a day after the European Central Bank said it would trim emergency bond purchases over the coming quarter.
Additional reporting by CNA, with staff writer
European Central Bank (ECB) President Christine Lagarde is expected to step down from her role before her eight-year term ends in October next year, the Financial Times reported. Lagarde wants to leave before the French presidential election in April next year, which would allow French President Emmanuel Macron and German Chancellor Friedrich Merz to find her replacement together, the report said, citing an unidentified person familiar with her thoughts on the matter. It is not clear yet when she might exit, the report said. “President Lagarde is totally focused on her mission and has not taken any decision regarding the end of
French President Emmanuel Macron told a global artificial intelligence (AI) summit in India yesterday he was determined to ensure safe oversight of the fast-evolving technology. The EU has led the way for global regulation with its Artificial Intelligence Act, which was adopted in 2024 and is coming into force in phases. “We are determined to continue to shape the rules of the game... with our allies such as India,” Macron said in New Delhi. “Europe is not blindly focused on regulation — Europe is a space for innovation and investment, but it is a safe space.” The AI Impact Summit is the fourth
CONFUSION: Taiwan, Japan and other big exporters are cautiously monitoring the situation, while analysts said more Trump responses ate likely after his loss in court US trading partners in Asia started weighing fresh uncertainties yesterday after President Donald Trump vowed to impose a new tariff on imports, hours after the Supreme Court struck down many of the sweeping levies he used to launch a global trade war. The court’s ruling invalidated a number of tariffs that the Trump administration had imposed on Asian export powerhouses from China and South Korea to Japan and Taiwan, the world’s largest chip maker and a key player in tech supply chains. Within hours, Trump said he would impose a new 10 percent duty on US imports from all countries starting on
STRATEGIC ALLIANCE: The initiative is aimed at protecting semiconductor supply chain resilience to reduce dependence on China-dominated manufacturing hubs India yesterday joined a US-led initiative to strengthen technology cooperation among strategic allies in a move that underscores the nations’ warming ties after a brief strain over New Delhi’s unabated purchase of discounted Russian oil. The decision aligns India closely with Washington’s efforts to build secure supply chains for semiconductors, advanced manufacturing and critical technologies at a time when geopolitical competition with China is intensifying. It also signals a reset in relations following friction over energy trade and tariffs. Nations that have joined the Pax Silica framework include Japan, South Korea, the UK and Israel. “Pax Silica will be a group of nations
RSS