Asian currencies ended the week mainly up against the dollar, but continued jitters over the alleged plot to blow up transatlantic passenger planes could see the greenback rebound in the region.
JAPANESE YEN: The Japanese yen eased in the past week as traders sought a safe haven in the US currency amid investor jitters after Britain said it had thwarted a plot to blow up US-bound passenger jets, dealers said.
The yen received further pressure from the slower than expected gross domestic product data, released hours after the news of the terror plan was reported.
The yen fell to 115.45 to the dollar on Friday, down from 115.15 a week earlier.
"The dollar received support from short-covering because of the terror report in Europe, where financial markets were hit," said Satoshi Okagawa, head of the FX trading group at Sumitomo Mitsui Banking Corporation.
The yen was weighed down further after the government said the economy grew by just 0.2 percent in the three months to June from the previous quarter, due largely to a slowdown in US demand for Japanese exports.
The yen had firmed earlier in the week after the US Federal Reserve suspended its interest rate tightening cycle after more than two years of hikes that had lifted the benchmark cost of borrowing to 5.25 percent.
Tokyo trading was becoming thin, as participants leave for summer vacations, dealers added.
AUSTRALIAN DOLLAR: The Australian dollar is expected to trade lower early this week amid ongoing concern about a foiled terrorist attack in Britain, and possibly rise later in the week on strong domestic data, dealers said.
The Australian dollar was trading at 76.80 US cents late Friday, up from the previous week's 76.16 US cents but down from its mid-week highs.
ABN Amro corporate risk adviser Natalie Censori said even a better-than-expected trade deficit had failed to outweigh security concerns impacting on the Aussie dollar.
She said those concerns would continue to weigh on the currency into the early part of the week.
"Perhaps we're seeing a little bit of rising risk aversion in the market, which might be part of the reason the Aussie's been affected," she said.
However, Macquarie Bank currency strategist Jo Masters said Australia's geographic location meant the security concerns raised by the alleged plot in Britain would eventually dissipate.
"Distance from the action helps the Aussie and Kiwi," she said.
She said the focus next week would be on the June quarter labour price index data released Wednesday and Reserve Bank of Australia governor Ian Macfarlane's testimony to a parliamentary committee Friday.
Macfarlane is expected to be quizzed on the bank's decision this month to raise interest rates by 25 basis points to 6.0 percent and whether another hike is likely in the near future.
NEW ZEALAND DOLLAR: The New Zealand dollar ended the week at 63.50 US cents, sharply up from 61.97 cents the previous Friday.
The kiwi rose following bullish job data released mid-week, supported by expectations that interest rates will remain on hold for longer than expected.
Dealers said there was enough momentum for the kiwi to head to 63.80-64.00 US cents in upcoming trade.
CHINESE YUAN: The yuan ended at 7.9766 to the dollar on the exchange-traded market Friday, compared with 7.9660 the day before, and 7.9773 one week earlier.
Friday's central parity rate for the yuan was set at 7.9725 to the dollar.
The central bank has a daily yuan-dollar trading band of 0.3 percent on either side of the midpoint.
HONG KONG DOLLAR: The US-dollar pegged Hong Kong dollar closed the week unchanged from the previous week's close of 7.773.
INDONESIAN RUPIAH: The rupiah ended the week stronger at 9,072-9,077 to the dollar on Friday, compared to the previous week's close of 9,300-9,305.
PHILIPPINE PESO: The Philippine peso rose to 51.25 to the dollar on Friday, from 51.52 the week before.
SINGAPORE DOLLAR: The dollar closed the week at 1.5755 Singapore dollars, as compared with 1.5771 the previous week.
SOUTH KOREAN WON: The won closed at 961.80 won per dollar Friday, up from 964.80 a week earlier.
The dollar appreciated 3.90 won on Friday alone, ending three straight days of depreciation, as business firms bought the greenback to pay their import bills and foreign investors turned net sellers in the stock market, dealers said.
The dollar is expected to trade between 956-964 won in the coming week.
TAIWAN DOLLAR: The Taiwan dollar rose 0.68 percent this week to close on Friday at 32.644 against the US dollar, as compared with 32.869 a week earlier.
THAI BAHT: The Thai baht rose to a six-year high against the dollar this week due to a rise in capital inflows and hopes for an end to the country's months-long political crisis, dealers said.
The Thai currency closed Friday at 37.33-40 to the greenback, up from 38.16-19 a week earlier.
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