Asian currencies mixed against dollar

Asian currencies were mixed against the US dollar last week in thin year-end trade.
JAPANESE YEN: The yen dropped against the dollar in the past week amid growing hopes for sustained recovery in the United States, while Japanese assets looked less attractive due to the nation's easy monetary policy. The yen stood at 92.41 to the dollar in Thursday trade in Singapore, down from 91.30 to the dollar on Friday, December 25 in Tokyo. Asian markets took a break on Friday for New Year's day.
"Expectations of an economic recovery in the United States continued to sustain underlying support for the dollar," said Yosuke Hosokawa, head of forex at Chuo Mitsui Trust Bank. "The market has reacted positively to recent US economic data, including job figures," Hosokawa said. Speculation has grown recently that the Federal Reserve might raise rates sooner than previously expected as the US economy claws back from recession.
In contrast, the Bank of Japan is widely tipped to leave its benchmark lending rate at very low levels for some time yet as it battles renewed deflation in the world's second largest economy. Japan's key lending rate currently stands at 0.1 percent, while the Fed has set a range of zero to 0.25 percent for its main interest rate.
AUSTRALIAN DOLLAR: The Australian dollar ended the week higher, as the currency moved towards the 90 US cents mark in quiet trading, dealers said. The Aussie closed at 89.68 US cents on Thursday, above the previous week's close of 88.25 US cents.
Westpac Banking Corp currency strategist Jonathan Cavenagh said the currency's recent rally came on the strength of commodities, particularly iron ore and thermal coal.
"The whole bulk commodities story is really starting to be a positive again for the currency," he said. Westpac anticipates the Aussie will reach 96 US cents by the end of the March quarter in 2010.
NEW ZEALAND DOLLAR: The New Zealand dollar finished local trading Thursday ahead of the New Year holiday at 72.57 US cents, up from 70.54 at the end of the previous week. ANZ chief currency dealer Murray Hindley attributed the kiwi's rise to end-of-year influences.
"There's no data to suggest this is other than thin market activity... and a continuation of position-squaring into the year end," he said. CHINESE YUAN: The yuan closed at 6.8270 to the dollar Thursday on the over-the counter market, compared with Wednesday's close of 6.8253 and a closing price of 6.8272 to the dollar the week before.
The central bank had set the yuan central parity rate at 6.8282 to the dollar Thursday, compared with 6.8283 on Wednesday. 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 ended the week at 7.755 from 7.757 the week before.
INDONESIAN RUPIAH: The rupiah closed at 9,435 to the dollar, from 9,500 the week before.
PHILIPPINE PESO: The Philippine peso closed marginally lower against the US dollar week on week at 46.53 on December 29 from 46.51 on December 23. There was no trading on December 24-25 or from and December 30 to January 1.
SINGAPORE DOLLAR: The Singapore dollar closed the week at 1.4034 to the US dollar from 1.4064 the previous week.
SOUTH KOREAN WON: The won strengthened against the dollar, closing at 1,164.5 won on Wednesday, the last trading day, compared with 1,175.00 won on Thursday last week. Exporters actively sold the greenback in year-end settlements, prompting suspected intervention by the central bank amid concerns that the won's persistent strength may sap an export-led recovery.
Dealers said the greenback is poised for more falls this year.
TAIWAN DOLLAR: The Taiwan dollar rose 0.76 percent in the week to December 31 to close at 32.030 against the US dollar. The local currency closed at 32.274 a week earlier. THAI BAHT: The Thai baht was flat against the dollar over the past week amid light trading, dealers said. The Thai unit closed the year at 33.33-35 baht to one dollar, a rise of more than 4.0 percent over the past year, and is expected to gain further against the greenback in 2010, they said. The Kasikorn Research Center predicted that the baht would test the 33.00-level in the first half of next year and close 2010 at around 31.50.