Asian currencies had their biggest weekly gain in more than a month as signs a global recession is easing encouraged investors to buy emerging-market assets.
The Bloomberg-JPMorgan Asia Dollar Index, which tracks the region’s 10 most-active currencies excluding the yen, climbed 1.3 percent this week, while the MSCI Asia-Pacific Index jumped 7.6 percent. South Korea’s won on Friday climbed to a six-month high after research firm EPFR Global said developing Asia was the biggest recipient of new investment in equity funds this month.
The won appreciated 2.9 percent this week to 1,246.90 per dollar, according to data compiled by Bloomberg. Indonesia’s rupiah jumped 2.3 percent to 10,374 and the Singapore dollar climbed 0.9 percent to S$1.4659.
Like the greenback, the yen fell against Asia’s other most-used currencies this week as the prospect of a global economic recovery fueled demand for higher-yielding assets.
The New Taiwan dollar had a third weekly gain, on optimism thawing relations with China will help lift Taiwan out of a recession. The TAIEX stocks index jumped 9.9 percent, its best weekly performance in more than six years, as overseas investors bought a net NT$75.5 billion (US$2.3 billion) worth of Taiwanese shares.
“There’s clear optimism that Taiwan would be one of the economies to benefit more directly through investment inflows and goodwill from the mainland,” said Nizam Idris, a currency strategist with UBS AG in Singapore.
The NT dollar rose 0.6 percent to NT$33.040 against the greenback, according to Taipei Forex Inc. It reached NT$32.833 on Monday, the highest level this year.
Malaysia’s ringgit advanced 1.2 percent to 3.5180 per dollar, according to data compiled by Bloomberg.
Elsewhere, the Philippine peso gained 2.3 percent to 47.257 per dollar, its best performance this year, and the Thai baht rose 1.1 percent to 34.88. India’s rupee climbed 1.6 percent to 49.28. China’s yuan was little changed at 6.8218 versus 6.8230 the previous week.
The US dollar declined to a six-week low against the euro as a government report showed US employers cut fewer jobs last month than economists forecast, reducing demand for relative safety.
The US dollar lost as much as 1.8 percent to US$1.3633 versus the euro, the weakest level since March 26, before trading at US$1.3633 at 4:20pm in New York on Friday. The US currency dropped 0.7 percent to ¥98.44, from ¥99.12. The euro increased 1.1 percent to ¥134.20, from ¥132.71.
The Canadian dollar increased as much as 1.8 percent to C$1.1491, the strongest level since Nov. 5.
The currency was 3 percent higher this week, its sixth straight weekly gain.
UPDATED (3:40pm): A suspected gas explosion at a shopping mall in Taichung this morning has killed four people and injured 20 others, as emergency responders continue to investigate. The explosion occurred on the 12th floor of the Shin Kong Mitsukoshi in Situn District (西屯) at 11:33am. One person was declared dead at the scene, while three people were declared deceased later after receiving emergency treatment. Another 20 people sustained major or minor injuries. The Taichung Fire Bureau said it received a report of the explosion at 11:33am and sent rescuers to respond. The cause of the explosion is still under investigation, it said. The National Fire
ACCOUNTABILITY: The incident, which occured at a Shin Kong Mitsukoshi Department Store in Taichung, was allegedly caused by a gas explosion on the 12th floor Shin Kong Group (新光集團) president Richard Wu (吳昕陽) yesterday said the company would take responsibility for an apparent gas explosion that resulted in four deaths and 26 injuries at Shin Kong Mitsukoshi Zhonggang Store in Taichung yesterday. The Taichung Fire Bureau at 11:33am yesterday received a report saying that people were injured after an explosion at the department store on Section 3 of Taiwan Boulevard in Taichung’s Situn District (西屯). It sent 56 ambulances and 136 paramedics to the site, with the people injured sent to Cheng Ching Hospital’s Chung Kang Branch, Wuri Lin Shin Hospital, Taichung Veterans General Hospital or Chung
‘LAWFUL USE’: The last time a US warship transited the Taiwan Strait was on Oct. 20 last year, and this week’s transit is the first of US President Donald Trump’s second term Two US military vessels transited the Taiwan Strait from Sunday through early yesterday, the Ministry of National Defense said in a statement, the first such mission since US President Donald Trump took office last month. The two vessels sailed south through the Strait, the ministry said, adding that it closely monitored nearby airspace and waters at the time and observed nothing unusual. The ministry did not name the two vessels, but the US Navy identified them as the Arleigh Burke-class guided-missile destroyer USS Ralph Johnson and the Pathfinder-class survey ship USNS Bowditch. The ships carried out a north-to-south transit from
RESOLVE: The increased expenditure, if approved by the legislature, would likely see Taipei buying more defense articles from Washington, reducing its trade surplus The government aims to increase defense spending to at least 3 percent of GDP this year, President William Lai (賴清德) said yesterday, hours after US President Donald Trump again threatened tariffs on Taiwanese semiconductors. At a news conference in Taipei following his first high-level national security meeting this year, Lai said the government would propose a special budget this year to increase the nation’s defense spending to more than 3 percent of GDP. “Taiwan must firmly safeguard its national sovereignty, strengthen its resolve for self-defense and bolster its defense capabilities,” he said. The president also vowed to double down on defense reforms and