Asian currencies had mixed fortunes against the US dollar this week as markets continued to slump amid increasing worries over the global financial crisis.
JAPANESE YEN: The yen rebounded against the dollar in the past week amid deepening concerns over the US economy ahead of a weekend Group-of-20 summit on the global financial crisis.
The Japanese currency stood at 96.87-90 against the dollar at the end of daytime trading on Friday, up from 97.58-60 against the dollar a week earlier. It dipped to the week's low of 99.30 on Monday following China's announcement of a four trillion yuan (586 billion-dollar) economic stimulus package which was seen helpful to refloat the global economy.
But the yen sprang back to peak at 94.53 on Thursday due partly to renewed worries over the US economy.
Most dealers predicted that the dollar would stay under pressure in the coming week unless the G20 summit in Washington takes aggressive action on the financial crisis. "If the only thing countries agree on is the recognition of the crisis, we may see more market turmoil next week," Chuo Mitsui Trust Bank chief forex strategist Yosuke Hosokawa said ahead of the meeting.
"At the summit, each country will likely look inwards and discuss from the standpoint of protecting its own national interests," said Sumitomo Mitsui Banking Corp strategist Daisuke Uno. "That means that a prescription to curb the financial crisis is unlikely to be drawn up." If the market detests the outcome of the G20, it could prompt market players to buy back the low-interest yen due to a "decline in risk tolerance among investors," Nikkei Quick News said.
AUSTRALIAN DOLLAR: With movement in the value of the Australian dollar linked to the fortunes of global stock markets, more volatility can be expected in the week ahead, analysts said. The Australian dollar was trading late Friday at 65.61 US cents, down from the previous week's close of 67.04 US cents but off earlier lows.
"Moves in global equities should continue to drive the AUD next week as the correlation between the two appears strong at present," said Patricia Gacis of ANZ Economics and Market Research.
"Expect wide ranges and whippy trading, although recent (central bank) actions should lend the currency a floor." ANZ senior currency strategist Tony Morriss said financial markets were optimistic ahead of the G20 meeting in Washington this weekend. "There's speculation the IMF (International Monetary Fund) will be given broader powers to support troubled emerging markets," Morriss said. "We might see big, co-ordinated rate cuts."
NEW ZEALAND DOLLAR: The New Zealand dollar ended the week at 58.65 US cents, barely changed from 58.68 the previous Friday. The NZ dollar sank to 55.10 US cents on Thursday amid the latest bout of global share market weakness, dealers said. But it surged higher Friday in line with a recovery in world share markets, prompting short-covering in the kiwi.
CHINESE YUAN: The yuan closed at 6.8251 to the dollar Friday on the exchange-traded market, compared with Thursday's close of 6.8316, and a closing price of 6.8251 to the dollar the week before. On the over-the-counter market, it ended the day at 6.8242 against the US dollar, up from Thursday's finish of 6.8300.
The central bank set the yuan central parity rate at 6.8289 to the dollar Friday, compared with 6.8295 Thursday. The People's Bank of China allows a trading band of 0.5 percent on either side of the midpoint.
HONG KONG DOLLAR: The US-pegged Hong Kong unit was at 7.751 to the dollar, almost unchanged from 7.750 a week earlier.
INDONESIAN RUPIAH: The rupiah ended at 11,500 to the dollar, down from 11,180 the week before.
PHILIPPINE PESO: The Philippines peso rose to 48.81 to the dollar on Friday afternoon from 48.94 a week earlier
SINGAPORE DOLLAR: The dollar was at 1.5148 Singapore dollars from 1.4924 the week before.
SOUTH KOREAN WON: The won closed at 1,399.2 to the dollar Friday, compared with 1,328.8 a week earlier, amid lingering concerns about the global financial crisis. Dealers said the won may rise sharply next week if US stocks fall, with market participants waiting for measures that would allow fresh money to be supplied in the market.
The won has been Asia's worst performing major currency this year, falling from 937 to the US unit on January 2.
TAIWAN DOLLAR: The Taiwan dollar fell 0.78 percent in the week to November 14 to close at 33.079 against the US dollar. The local currency closed at 32.824 a week ago.
THAI BAHT: The Thai baht was stable against the dollar over the past week but dealers expected it to weaken against the greenback during next week's trading, dealers said. The baht closed Friday at 34.97-99 baht to one dollar compared to last week's close of 34.96-99.
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