The US dollar and yen fell against most of their major counterparts after data showing growth in economies from China to the US boosted demand for higher-yielding assets.
“We’ve certainly seen rays of sunshine as far as risk sentiment is concerned,” said Vassili Serebriakov, a currency strategist at Wells Fargo & Co in New York. “You get a sense that growth in Asia is slowing from very strong levels, but remains firm, and the US growth is very modest, but the economy should be steering clear of a double-dip recession.”
The US dollar fell 1.1 percent to ¥84.31 on Friday, from ¥85.22 on Aug. 27, in its third straight weekly drop, the longest slide in two months. The greenback weakened 1 percent to US$1.2896 per euro.
The yen was little changed versus the euro after rising in each of the previous three weeks.
The euro rose for a fourth day against the US dollar on Friday, the longest winning streak in five weeks.
The yen gained versus the dollar this week amid speculation that moves to increase credit-easing measures in Japan won’t curb the currency’s surge. It has gained 14 percent this year, the most among 10 developed-world counterparts, as investors sought it as a haven, Bloomberg Correlation-Weighted Currency Indices show. It touched a 15-year high, ¥83.60 per US dollar, on Aug. 24. A strong currency hurts Japanese exporters’ competitiveness.
The pound fell for a fourth week against the dollar, the longest run of losses since June, as reports showing that UK services grew at a slower pace and house prices dropped fueled concern the recovery will falter.
The pound was at US$1.5445 as of 5:15pm in London on Friday. It fell to US$1.5327 on Tuesday, the lowest level since July 23. The pound was at £0.8341 per euro, leaving it 1.5 percent weaker since Aug. 27.
The currency may extend losses before the central bank’s interest rates decision in the week ahead.
The Bank of England will keep its benchmark interest rate at a record low 0.5 percent and maintain its asset purchases at £200 billion on Thursday, according to economists surveyed by Bloomberg.
“Sterling continues to feel the heat from weaker UK numbers this week,” said Paul Robson, a senior foreign-exchange strategist at Royal Bank of Scotland Group PLC in London.
SLOW-MOVING STORM: The typhoon has started moving north, but at a very slow pace, adding uncertainty to the extent of its impact on the nation Work and classes have been canceled across the nation today because of Typhoon Krathon, with residents in the south advised to brace for winds that could reach force 17 on the Beaufort scale as the Central Weather Administration (CWA) forecast that the storm would make landfall there. Force 17 wind with speeds of 56.1 to 61.2 meters per second, the highest number on the Beaufort scale, rarely occur and could cause serious damage. Krathon could be the second typhoon to land in southwestern Taiwan, following typhoon Elsie in 1996, CWA records showed. As of 8pm yesterday, the typhoon’s center was 180km
STILL DANGEROUS: The typhoon was expected to weaken, but it would still maintain its structure, with high winds and heavy rain, the weather agency said One person had died amid heavy winds and rain brought by Typhoon Krathon, while 70 were injured and two people were unaccounted for, the Central Emergency Operation Center said yesterday, while work and classes have been canceled nationwide today for the second day. The Hualien County Fire Department said that a man in his 70s had fallen to his death at about 11am on Tuesday while trimming a tree at his home in Shoufeng Township (壽豐). Meanwhile, the Yunlin County Fire Department received a report of a person falling into the sea at about 1pm on Tuesday, but had to suspend search-and-rescue
RULES BROKEN: The MAC warned Chinese not to say anything that would be harmful to the autonomous status of Taiwan or undermine its sovereignty A Chinese couple accused of disrupting a pro-democracy event in Taipei organized by Hong Kong residents has been deported, the National Immigration Agency said in a statement yesterday afternoon. A Chinese man, surnamed Yao (姚), and his wife were escorted by immigration officials to Taiwan Taoyuan International Airport, where they boarded a flight to China before noon yesterday, the agency said. The agency said that it had annulled the couple’s entry permits, citing alleged contraventions of the Regulations Governing the Approval of Entry of People of the Mainland Area into the Taiwan Area (大陸地區人民進入台灣地區許可辦法). The couple applied to visit a family member in
CELEBRATION: The PRC turned 75 on Oct. 1, but the Republic of China is older. The PRC could never be the homeland of the people of the ROC, Lai said The People’s Republic of China (PRC) could not be the “motherland” of the people of the Republic of China (ROC), President William Lai (賴清德) said yesterday. Lai made the remarks in a speech at a Double Ten National Day gala in Taipei, which is part of National Day celebrations that are to culminate in a fireworks display in Yunlin County on Thursday night next week. Lai wished the country a happy birthday and called on attendees to enjoy the performances and activities while keeping in mind that the ROC is a sovereign and independent nation. He appealed for everyone to always love their
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