Oil back above $100 adds inflation risk; Taiwan dollar ends 4-day winning streak
Rising Middle East tension pushed oil past $100 a barrel, knocking Taiwan stocks and the local currency lower — bad news for anyone hoping central banks are done raising rates.
- Taiwan's stock index fell below 47,000 as foreign investors turned into net sellers.
- The Taiwan dollar snapped a four-day rally, closing weaker at 31.548 against the US dollar.
- Other Asian currencies slipped too as the yen's climb paused, though all remain near recent highs.
- Traders are waiting on fresh US inflation numbers, with markets pricing roughly a 60% chance the Fed hikes next week.
- The European Central Bank is expected to raise rates today, and the euro has been strengthening.
Outlook: Next week's "super central bank week" — the Fed, the Bank of Japan and Taiwan's central bank all reporting — will set the direction for the dollar, yen and Taiwan dollar.