Asian currencies ended the week mostly higher against the dollar as traders awaited the fate of a massive US rescue package aimed at stabilising the global finance sector and economy.
JAPANESE YEN: The yen rose moderately during the week, taking advantage of selling pressure on the dollar after political wrangling held up a proposed Wall Street bailout plan, adding to market jitters, dealers said. After a volatile week, the Japanese currency stood at 105.68 against the dollar late Friday, up from 107.33 a week earlier.
Markets were waiting impatiently for the US Congress to pass the much debated 700-billion-dollar financial sector rescue package. Hopes that a deal was imminent faded as top lawmakers struggled to resolve their differences over the plan.
"The plan's contents are unclear and markets are uncertain how it's going to play out," said Kenichi Yumoto, vice president of forex sales at Societe Generale.
While the dollar could rise if Congress approves the rescue plan, the gains are likely to be short-lived due to concerns about the worsening US economy and public finances, Societe Generale's Yumoto said.
AUSTRALIAN DOLLAR: The Australian dollar was likely to trade in a tight range in the week ahead unless the US government's 700 billion US dollar Wall Street rescue passage succeeded, dealers said. At 5.00pm on Friday the Australian dollar was trading at 83.20 US cents, well up from the previous week's 81.15 US cents.
The Aussie opened 2.5 US cents higher on Monday following US Treasury Secretary Henry Paulson's weekend announcement of the package designed to help embattled financial institutions.
But political wrangling over the package had ensured the currency remained rangebound since, CMC Markets foreign exchange dealer Tim Waterer said. "There's still reluctance to take positions until we get some outcome," he said.
Head of investment strategy and chief economist at AMP Capital Investors Shane Oliver said it was likely that the Aussie would fall in the short-term.
NEW ZEALAND DOLLAR: The New Zealand dollar ended the week at 68.76 US cents, up from 67.35 the previous Friday.
The New Zealand dollar fluctuated during the week, largely reflecting the fortunes of the US dollar as investors weighed the chances of a successful outcome for the US government's 700 billion US dollar rescue package for the financial industry. The kiwi gained a little ground on Friday when New Zealand's June quarter economic contraction came in at 2.0 percent, less than forecast by economists. However, the second straight quarter of economic decline meant New Zealand was in recession in the first half of the year.
The central bank is expected to further cut interest rates because of the weak economy, which will put downward pressure on the kiwi.
CHINESE YUAN: The yuan closed at 6.8434 to the dollar Friday on the exchange-traded market, compared with Thursday's close of 6.8216, and a closing price of 6.8357 to the dollar the week before. On the over-the-counter market, it ended at 6.8485 to the dollar against 6.8170 the previous day.
The central bank had set the yuan central parity rate at 6.8183 to the dollar Friday, compared with 6.8197 on Thursday.
HONG KONG DOLLAR: The US-linked Hong Kong dollar was at 7.777 to the greenback, compared with 7.783 the week before.
INDONESIAN RUPIAH: The rupiah ended the week's trading at 9,405 to the dollar, down from 9,375 a week earlier.
PHILIPPINE PESO: The peso fell to 46.745 to the dollar on Friday afternoon from 46.555 on September 19.
SINGAPORE DOLLAR: The dollar was at 1.4246 Singapore dollars on Friday from 1.4356 the previous week.
SOUTH KOREAN WON: The won fell to a 49-month low against the dollar Friday as import settlements and the selling of domestic stocks by foreigners added to uncertainty over a US bailout of debt-laden banks, dealers said.
The won closed at 1,160.50 to the dollar, the lowest level since August 2004. It was down 2.3 won from Thursday's close and 0.5 won from a week earlier. The won has lost more than 19 percent against the greenback so far this year.
TAIWAN DOLLAR: The Taiwan dollar rose against the US dollar during the week to close at 32.045, up from 32.158 a week earlier.
THAI BAHT: The baht rose against the greenback over the past week because of poor US economic data and the ongoing financial crisis there, dealers said. The Thai unit closed Friday at 33.93-95 to the dollar compared to the previous week's close of 34.16-18.
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