The US dollar rose on Friday and posted its third straight week of gains against a basket of major currencies, as uncertainty over beleaguered property developer China Evergrande Group (恆大集團) helped the greenback bounce back from a sharp decline in the prior session.
The Chinese firm owes US$305 billion and has run short on cash, missing a Thursday deadline for paying US$83.5 million and leaving investors questioning whether it would make the payment before a 30-day grace period expires.
A collapse of the company could create systemic risks to China’s financial system.
THURSDAY DROP
The safe-haven US dollar had its biggest one-day percentage drop in about a month on Thursday, after Beijing injected new cash into the financial system and Evergrande announced that it would make interest payments on an onshore bond, boosting risk sentiment.
The offshore Chinese yuan weakened versus the greenback to yuan 6.4641 per dollar.
The decline came a day after the greenback was lifted by Wednesday’s announcement from the US Federal Reserve that it would likely begin to trim its monthly bond purchases as soon as November and flagged interest rate increases might follow suit sooner than expected as the central bank moves away from its COVID-19 crisis policies.
MULTIPLE FACTORS
“We are in one of the situations, and this doesn’t always happen, where the dollar is the beneficiary of multiple ideas,” FXStreet.com senior analyst Joseph Trevisani said.
“The US economy does look better than most of its competitors, there is lingering fear out there over Evergrande and what else is out there in the rather untransparent Chinese economy and political system, plus the Fed appears finally ready,” Trevisani said.
The US dollar index rose 0.237 percent, with the euro down 0.2 percent at US$1.1713.
NEW TAIWAN DOLLAR
The New Taiwan dollar rose against the US dollar, gaining NT$0.042 to close at NT$27.731, up a slight 0.02 percent from NT$27.736 a week earlier.
Sterling weakened a day after hawkish comments from the Bank of England on Thursday pushed the pound to its biggest one-day percentage gain since Aug. 23.
The Japanese yen weakened 0.43 percent to ￥110.77 versus the greenback, while Sterling declined 0.36 percent to US$1.3676.
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