Asia's currencies fell against the US dollar over the past week on speculation of a hike in US interest rates and uncertainty over the situation in Iraq as the war-torn country heads towards the June 30 handover of power.
JAPANESE YEN: The yen moved narrowly against the dollar in the past week with market speculation over the size of an anticipated US rate hike having run its course, dealers said.
They said the greenback might remain subject to selling caused by events in Iraq heading towards the transfer of sovereignty there, as well as speculative deals ahead of the US Federal Reserve's meeting on interest rates.
The yen seesawed during the week to fetch 109.52-54 to the dollar at 5:00 pm (0800 GMT) Friday, up from 110.21-23 to the dollar a week earlier.
It bounced back to mid-109 level after Fed chairman Alan Greenspan said on Tuesday that the Fed would raise interest rates at a "measured" pace.
The Fed is now widely expected to raise interest rates by 25 basis points from 46-year lows of 1.00 percent on June 30, with the market having largely ruled out the possibility of a 50-point hike.
AUSTRALIAN DOLLAR: The Australian dollar is expected to continuing falling next week after briefly hitting a nine-month low Friday on fears that the US Federal Reserve is preparing to hike interest rates, dealers said Friday.
The Australian dollar finished the week on 68.22 US cents, nearly a cent down on the previous week's 69.19 US cents.
National Australia Bank currency strategist John Kyriakopoulos said the risks for the local currency remained to the downside, with a possibility of it sliding to 65 US cents - a far cry from February's 2004 peak of 80.07 US cents.
He said because the Australian dollar had for some time already traded in the 68 to 72 US cent range it would likely break out of that range with a risk to the downside. "With 67.70 US cents being the key level, traders and investors are watching closely," Kyriakopoulos said. "If we did get through that level that will probably open up the possibility of 65 US cents."
Kyriakopoulos said the key element for the currency's future trajectory was the narrowing of the differential between US and Australian rates.
NEW ZEALAND DOLLAR: The New Zealand dollar closed Friday at 62.01 US cents, down from 62.95 cents a week earlier.
The possibility that China and the United States would lift their respective benchmark interest rates was behind the lack of appetite for the New Zealand currency, Bank of New Zealand currency strategist Sue Trinh said.
SINGAPORE DOLLAR: The US dollar was at 1.7197 Singapore dollars Friday from 1.7144 the previous week.
HONG KONG: Hong Kong's US-pegged dollar was at 7.7992 on Friday from 7.7947 the previous week.
INDONESIAN RUPIAH: The Indonesian rupiah ended the week weaker at 9,405/9,410 to the dollar compared with 9,370/9,385 the previous week.
PHILIPPINE PESO: The Philippines peso fell to 56.43 to the dollar in late trading on Friday compared to 55.88 on June 11.
Dealers said the unit traded near its all-time low of 56.45 amid rumours of a plot against President Gloria Arroyo following Congress' failure to proclaim the winner more than a month after the May 10 presidential election.
SOUTH KOREAN WON: The won closed at 1,160.0 won per dollar Friday, down from 1,164.0 won a week earlier, but up 2.70 won from the previous day.
"The exchange rate rose a bit as share prices fell and foreigners were buying dollars in the afternoon," a dealer said.
TAIWAN DOLLAR: The Taiwan dollar shed 0.5 percent over the week to finish at 33.785 against the greenback Friday, compared with 33.605 the previous week.
THAI BAHT: The Thai baht fell against the dollar in the past week due to lacklustre trade on the Thai bourse, and strong demand for greenbacks from local corporates amid active trading, dealers said.
The baht closed Friday at 40.92-95 baht to the dollar compared to last week's close of 40.71-73.
Comments
Comments are closed.