The yen led Asian currencies lower over the week after the US dollar was boosted by upbeat midweek comments by Federal Reserve chairman Alan Greenspan on the US economy.
JAPANESE YEN: The yen slipped against the dollar in Tokyo amid prospects of US interest rate hikes following Greenspan's remarks.
The Japanese unit fetched 109.87-90 to the dollar at 5:00 pm (0800 GMT) Friday after hitting the week's low of 110.03, down from 109.60-64 to the dollar a week earlier.
The Federal Reserve Board raised the federal funds target rate to 1.25 percent per year from one percent on June 30, the first hike in about four years. The market is now focusing on the possibility of additional rate hikes later this year.
But dealers said the dollar would remain top-heavy amid economic uncertainties.
"In the mid to longer term, I anticipate the dollar will depreciate," J.P. Morgan Chase currency strategist Junya Tanase said, pointing to the US fiscal deficit as a fundamental problem for the dollar.
Resona Bank market trading manager Keizo Tanaka added "terrorism fears" to long-term market concerns capping the dollar's upside.
The economic journal Nihon Keizai said there was little likelihood that the yen would suddenly deviate from its current 105-110 range "unless it becomes much clearer where the US monetary policy and share prices are going."
It added on its Internet edition that in the coming week the market would closely follow such economic data as Japan's June industrial output index due out on Thursday and US gross domestic product for April-June on Friday.
AUSTRALIAN DOLLAR: The Australian currency was tipped to gain ground next week, boosted by positive momentum over the past seven days and expectations of a rise in local interest rates.
The Aussie currency finished Friday at 71.27 US cents, a gain of 1.06 cents on the previous week's close. The dollar broke through 73 US cents during the week, ahead of Greenspan's testimony to Congress which gave support to the greenback and pushed the Aussie lower.
Citigroup director and forex strategist Stephen Halmarick said the Australian dollar would head higher again over the next few weeks amid signs the central Reserve Bank would raise interest rates. Some analysts suggested the interest rate rise could come as soon as next month.
The bank last increased rates by a quarter point to 5.25 percent in December.
The Australian Bureau of Statistics' release of the latest inflation data next week will be closely watched by money markets.
NEW ZEALAND DOLLAR: New Zealand's dollar closed Friday worth 64.06 US cents, down from the 65.24 cents close of a week earlier.
SINGAPORE DOLLAR: The US dollar was at 1.7187 Singapore dollars on Friday from 1.7060 the previous week.
HONG KONG: Hong Kong's US-pegged dollar was at 7.775 on Friday from 7.7994 the previous week.
INDONESIAN RUPIAH: The Indonesian rupiah ended the week slightly weaker at 9,070-9,080 to the dollar compared with 8,905-8,920 the previous week.
PHILIPPINE PESO: The Philippine peso traded lower at 56.055 to the dollar at week's close compared to 55.995 to the dollar a week earlier.
SOUTH KOREAN WON: The won closed at 1,166.20 won per dollar Friday, compared with 1,164.50 won a week earlier.
Senior finance ministry official Choi Jung-Kyung said Saturday that the government would issue one trillion won (857 million dollars') worth of won-denominated bonds every month between July and December to smooth the fluctuation of the won currency.
Minister of Finance and Economy Lee Hun-Jai hinted Friday that the government could intervene to prevent the won's further rise.
"Among Asian currencies, the won has appreciated most against the dollar," the country's top economic policymaker said.
TAIWAN DOLLAR: The Taiwan dollar fell 0.55 percent over the week to end at 34.065 against the greenback Friday.
THAI BAHT: The baht continued to weaken against the dollar over the past week in line with movements of regional currencies, especially the yen, dealers said.
The unit closed Friday at 41.05-07 baht to the dollar compared to the previous week's close of 40.80-83.
Comments
Comments are closed.