Asian currencies ended the week lower against the dollar on expectations of further US rate rises with the latest inflation data seen as indicating the Federal Reserve would continue with its tightening stance.
JAPANESE YEN: The yen tumbled to two-year lows against the dollar on expectations that the US Federal Reserve will continue with a string of US interest rate rises to try to keep inflation under control.
The Japanese currency stood at 114.50-52 to the dollar late Friday, down from 113.32-35 a week earlier.
It dipped to 114.87 to the dollar at one point here on Thursday, its lowest in Tokyo since September 2003, and slipped further to 115.10 to the dollar in New York later in the day.
The announcement late Friday of a bigger-than-expected 1.2-percent rise in the US consumer price index for September added to the view that the US Federal Reserve will not change its tightening policy stance.
Economists had expected the CPI to rise 0.9 percent in September, compared with a 0.5-percent gain in August.
But Aozora Bank foreign exchange manager Kazuhiro Nishina said that because the market had recently pushed up the dollar "on expectations of higher interest rates in the US," none of the economic data "is likely to cause a fresh round of dollar buying."
AUSTRALIAN DOLLAR: The Australian dollar was expected to react to key US inflation data released after trading closed Friday but despite recent "bobbing and weaving" remained fundamentally strong, dealers said.
At 5:00 pm Friday (0700 GMT) the Australian dollar was trading at 75.10 US cents, down on the previous week's 75.99 US cents.
CMC Markets foreign exchange dealer Josh Whiting said traders were awaiting the release of US inflation data.
"Metals are off a little bit, gold is off a little bit, and in that environment and with the focus on the US dollar it's hard for the Aussie to sustain any rallies just at the moment," he said.
However, CommSec chief equities economist Craig James said that despite its recent bumpy ride, the Australian dollar was fundamentally strong.
"The Aussie dollar has averaged 76.80 US cents so far in 2005, meaning that it is well on track to post the highest average result against the greenback in nine years," he said.
NEW ZEALAND DOLLAR: The New Zealand dollar ended the week at 69.35 US cents in local trading, down from 70.07 the previous week.
The currency weakened due to the strength of the greenback early in the week. A speech by New Zealand central bank governor Alan Bollard Friday saying the New Zealand dollar was overvalued had little impact because the currency was expected to be propped up by rising interest rates in the short term, dealers said.
CHINESE YUAN: The Chinese yuan closed at 8.0896 to the US dollar Friday, the central bank said in a statement on its website. That compared with a closing rate of 8.0920 on September 30, the last trading day before the week-long National Day holiday.
In accordance with its new policy, the State Administration of Foreign Exchange will take the closing price as the mid-point for the next trading day. The central bank allows a trading band of 0.3 percent either side of the mid-rate.
HONG KONG DOLLAR: The US-pegged Hong Kong dollar closed Friday at 7.758 compared with 7.7555 the previous week.
INDONESIAN RUPIAH: The rupiah closed weaker Friday at 10,100-10,110 to the dollar compared with 10,030-10,040 a week earlier.
PHILIPPINE PESO: The Philippines peso fell to 55.830 to the dollar on Friday from 55.805 on October 7.
SINGAPORE DOLLAR: The dollar was at 1.6896 Singapore dollars from 1.6823 the week before.
SOUTH KOREAN WON: The won closed at 1,044.90 to the dollar Friday, compared with 1,037.20 won a week earlier.
Dealers said the dollar was expected to move between 1,042 won and 1,049 won to the greenback in the coming week.
TAIWAN DOLLAR: The Taiwan dollar closed Friday at 33.450 against the US dollar, down from 33.232 a week earlier.
THAI BAHT: The baht was flat against the US dollar in the past week on anticipation that the Bank of Thailand will raise the key interest rate when the central bank's Monetary Policy Committee meets on October 19, dealers said.
The Thai currency closed Friday at 40.86-88 baht to one dollar, compared to the previous week's close of 40.83-85.
The Thai unit improved slightly against the euro to close at 49.02-06 baht to one, compared to the previous week's close of 49.60-65.
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