The US dollar hit three-week highs on Friday, still benefiting from better-than-expected US retail sales data released on Thursday, which supports expectations of a reduction in asset purchases by the US Federal Reserve before the end of the month. ‘year.
The US dollar index, a measure of the greenback’s value against six major currencies, rose 0.3% to 93.25, its highest since late last month. The index rose 0.7 percent for the week.
In Taipei, the New Taiwan Dollar fell against the greenback, losing NT $ 0.021 to close at NT $ 27.736, down 0.2% for the week.
The Fed is holding a two-day monetary policy meeting next week and is expected to open talks on reducing its monthly bond purchases, while tying any real changes to US job growth this month- here and beyond.
“With tapering there is certainly some rise in initial and intermediate yields and should be positive for the dollar on the initial announcement,” said Simon Harvey, senior currency analyst at Monex Europe in London.
Speculation about a Fed cut this year has gathered pace after retail sales in the United States unexpectedly surged last month, data showed Thursday, up 0.7% from the previous month , despite expectations of a decline of 0.8%.
The euro slipped about 0.3% against the greenback on Friday to US $ 1.1726, down 0.8% for the week.
University of Michigan consumer sentiment for this month edged up to 71 from the final reading of 70.3 for last month, but global analysts said the rise was far from improvements seen in manufacturing surveys of the Empire States and the Philadelphia Fed. The US dollar maintained gains after the Michigan sentiment report.
The US dollar appreciated 0.2% against the Swiss franc on Friday to 0.9299 SF, after hitting a five-month high.
The greenback rose 0.3% to ￥ 110.025. The yen has shown limited reaction to the ruling Liberal Democratic Party’s leadership race, which officially begins Friday ahead of the September 29 vote. The party’s parliamentary dominance means its new leader will become prime minister.
The US dollar also hit a two-week high against the offshore yuan and rose 0.1% to 6.4642. The Chinese currency is coming under pressure from growing concerns about the Chinese real estate sector, with investors fearing that real estate giant China Evergrande Group (恒大 集團) could default on its coupon payment next week.
The Evergrande saga follows a series of regulatory crackdowns in China that rocked investor confidence in the local stock market, as well as signs of slowing growth.
The British pound fell around 0.2% to US $ 1.3740, down 0.7% per week as UK retail sales fell below expectations.
However, with investors pushing forward expectations for a Bank of England interest rate hike in the middle of next year, the pound remains strong and is approaching one-month highs.
CNA Supplementary Reports, with Editor-in-Chief
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