The US dollar traded near two-week high against the euro after Federal Reserve Chairman Ben Bernanke said an increase in inflation expectations is a “significant concern” for the central bank.
An index gauging the greenback against the currencies of six US trading partners rose on Friday for a third day as Bernanke’s comment led traders to raise bets that policy makers will increase borrowing costs later this year. The European Central Bank is forecast by economists to keep its main refinancing rate at a six-year high.
Bernanke “definitely fed into market expectations of a rate hike later this year,” said Brian Dolan, chief currency strategist at FOREX.com, a unit of online currency trading firm Gain Capital in Bedminster, New Jersey. “It gave a boost to the dollar.”
The dollar was little changed at US$1.5441 per euro in Tokyo, after touching US$1.5411 on June 3, the highest level since May 14. The dollar traded at ¥105.21, following a 0.14 percent increase on Friday. The euro was little changed at ¥162.48.
Bernanke cited an increase in indicators that the public expects prices to rise in a speech at Harvard University in Cambridge, Massachusetts, on Friday.
The consumer price index rose 3.9 percent for the year ended in April and expectations of inflation five years from now rose to 3.4 percent last month versus 3 percent in January, the Reuters/University of Michigan Survey showed.
ONGOING PROBE: A former Military Intelligence Bureau colonel, major general and another colonel, as well as five other people, have been questioned by prosecutors The Taipei District Court yesterday ordered that a retired colonel from the Military Intelligence Bureau (MIB) calling himself Taiwan’s “first special agent” be detained and held incommunicado as part of an ongoing investigation into espionage allegations targeting at least three former bureau officials. The Taipei District Prosecutors’ Office was seeking to detain former MIB colonel Chang Chao-jan (張超然) over his alleged involvement in introducing retired agents to Chinese national security authorities and passing confidential documents to China. Chang’s actions, if proven, would contravene the National Security Act (國家安全法), which carries a prison term of three to 10 years, and the National Intelligence
The US House of Representatives’ China Task Force, launched by Republicans earlier this year, yesterday proposed the China task force act, a package of 137 pieces of legislation, seven of which involve Taiwan, in the hope of getting it passed before the 117th US Congress convenes on Jan. 3. The act encompasses a wide range of issues, including combatting Beijing’s influence around the globe, establishing the US’ dominance in determining 5G network standards and means for bringing UN members to task for abusing their influence within the UN system. The seven acts involving Taiwan address concerns such as the Taiwan Assurance Act
Chinese health authorities investigating a COVID-19 outbreak have said that they discovered live coronavirus on frozen food packaging, a finding that suggests the virus can survive in cold supply chains. The Chinese Center for Disease Control and Prevention on Saturday said that it had found traces of live COVID-19 on the outer packaging of frozen cod in the eastern city of Qingdao, marking the first time that live coronavirus has been detected on the outside of refrigerated goods. Researchers were investigating the source of a cluster of cases linked to a hospital in Qingdao. Genetic traces had previously been found in samples of
A Chinese soldier apprehended earlier this week by the Indian Army after he strayed across a tense de facto border was on Tuesday night handed back to China, an Indian government source in New Delhi said yesterday. The Chinese People’s Liberation Army (PLA) soldier had on Monday been captured in the Demchok area of eastern Ladakh, the Indian Army said in a statement. The Chinese military also released a statement, saying that Corporal Wang Yalong was handed over early yesterday. New Delhi on Monday said that it had detained Wang after he crossed into Indian-controlled territory, while China announced that Wang had gotten