The US dollar weakened to US$1.50 per euro for the first time in 14 months as more evidence of a recovery in the global economy from recession increased demand for higher-yielding assets.
The dollar fell 0.7 percent in the past week to US$1.5008 per euro, from US$1.4905 last Friday. The US currency touched US$1.50 on Wednesday for the first time since August last year.
The yen declined 1.3 percent to ¥92.06 versus the dollar, from ¥90.89, in its biggest decline since August. Japan’s currency depreciated 2 percent to ¥138.15 per euro, compared with ¥135.48 a week earlier.
The pound fell 1 percent this week to £0.9202 per euro after the UK’s economy unexpectedly contracted, fueling speculation that the Bank of England will increase its £175 billion (US$286 billion) program to buy bonds.
Asian currencies fell in the past week, with the South Korean won and the Philippine peso both sliding the most in more than four months, on speculation policy makers will limit currency gains to support exports.
The won was at 1,181.25 per dollar on Friday, 1.5 percent lower than last Friday. The currency rose in each of the previous eight weeks and reached 1,155.05 on Oct. 15, the strongest level in a year. The peso declined 0.8 percent this week to 46.995 and Indonesia’s rupiah slid 0.4 percent to 9,435, paring this year’s advance to 16 percent.
The yuan has dropped 8.6 percent from a record high on March 9 against the currencies of major trading partners including the euro and the Japanese yen, a Westpac Banking Corp index shows. It has weakened 16 percent versus the rupiah and 14 percent against the won during the past six months.
The New Taiwan dollar fell 0.3 percent in the past week to NT$32.398 versus the greenback.
Elsewhere, India’s rupee declined 0.5 percent in the week to 46.52 against the US dollar. Thailand’s baht and the Chinese yuan were little changed at 33.43 and 6.8286.
CSBC Corp, Taiwan (台灣國際造船) yesterday released the first video documenting the submerged sea trials of Taiwan’s indigenous defense submarine prototype, the Hai Kun (海鯤), or Narwhal, showing underwater navigation and the launch of countermeasures. The footage shows the vessel’s first dive, steering and control system tests, and the raising and lowering of the periscope and antenna masts. It offered a rare look at the progress in the submarine’s sea acceptance tests. The Hai Kun carried out its first shallow-water diving trial late last month and has since completed four submerged tests, CSBC said. The newly released video compiles images recorded from Jan. 29 to
Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) plans to make advanced 3-nanometer chips in Japan, stepping up its semiconductor manufacturing roadmap in the country in a triumph for Japanese Prime Minister Sanae Takaichi’s technology ambitions. TSMC is to adopt cutting-edge technology for its second wafer fab in Kumamoto, company chairman C.C. Wei (魏哲家) said yesterday. That is an upgrade from an original blueprint to produce 7-nanometer chips by late next year, people familiar with the matter said. TSMC began mass production at its first plant in Japan’s Kumamoto in late 2024. Its second fab, which is still under construction, was originally focused on
DETERRENCE EFFORTS: Washington and partners hope demonstrations of force would convince Beijing that military action against Taiwan would carry high costs The US is considering using HMAS Stirling in Western Australia as a forward base to strengthen its naval posture in a potential conflict with China, particularly over Taiwan, the Wall Street Journal reported on Saturday. As part of its Indo-Pacific strategy, Washington plans to deploy up to four nuclear-powered submarines at Stirling starting in 2027, providing a base near potential hot spots such as Taiwan and the South China Sea. The move also aims to enhance military integration with Pacific allies under the Australia-UK-US trilateral security partnership, the report said. Currently, US submarines operate from Guam, but the island could
The partisan standoff over President William Lai’s (賴清德) proposed defense budget has raised questions about the nation’s ability to adequately fund its own defense, the US Congressional Research Service (CRS) said in a report released on Tuesday. The report, titled Taiwan: Defense and Military Issues, said the government has increased its defense budget at an average annual rate of 5 percent from 2019 to 2023, with about 2.5 percent of its GDP spent on defense in 2024. Lai in November last year proposed a special budget of about US$40 billion over eight years, and said he intends to increase defense spending to
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