Asian currencies had a mixed week against the dollar on expectations of a US Federal interest rate hike and rising commodity prices.
JAPANESE YEN: The Japanese yen plunged in the past week against major currencies as the dollar advanced on prospects of further US rate hikes.
The yen stood at 120.48 to the dollar in Friday afternoon, down from 119.15 to the dollar seen a week ago.
"As the market is now focusing on interest rate differentials, the Japanese yen will be in the most inferior position in the foreign exchange market," said Makoto Kojima, managing director at UBS Tokyo.
"The issue of interest rates underpinned the dollar," Resona Bank dealer Shinji Kobayashi said, adding that Japanese importers were also buying dollars.
Expectations of further rises in US interest rates were cemented by a better-than-expected survey of the US factory sector and other positive recent indicators, said Kikuko Takeda, currency analyst at Bank of Tokyo-Mitsubishi.
"The dollar's strong trend will remain in the mid to long-term though it will face profit-taking (in the short-term)," said Takeda, who expects the US currency to reach around 122 yen this year.
AUSTRALIAN DOLLAR: Analysts expect the Australian dollar to rise against the greenback next week as markets await crucial US economic data.
The Australian dollar was trading at 74.26 US cents Friday, up on the previous week's 73.60 US cents.
RBC Capital Markets currency strategist Greg Gibbs said near-record commodity prices were driving up the Australian dollar against the greenback, even though the US currency was itself posting gains.
Attention this week will be focused on the Reserve Bank's monetary policy meeting, the results of which will be announced Wednesday.
NEW ZEALAND DOLLAR: The New Zealand dollar ended the week at 70.66 US cents, rising sharply from 69.42 the previous Friday.
BNZ currency strategist Sue Trinh said the strength of the New Zealand dollar continued to be affected by "an insatiable appetite for yield" at a time when global interest rates were relatively low.
This country had the highest interest rates in the developed world, she said. New Zealand's official interest rate is at 7.00 percent and the central bank is expected to lift rates again due to inflationary pressures when it meets on Thursday.
CHINESE YUAN: The Chinese yuan closed at 8.0806 to the US dollar, the central bank said in a statement on its website Friday.
That compared with a closing price of 8.0798 on the previous trading day.
HONG KONG DOLLAR: The US-pegged Hong Kong dollar closed Friday at 7.7555 from 7.7553 the previous week.
INDONESIAN RUPIAH: The rupiah closed Friday slightly stronger at 10,000/10,010 to the dollar compared to last week's close 10,050-10,055.
PHILIPPINE PESO: The Philippine peso traded slightly lower Friday at 54.15 to the dollar on Friday from 54.15 to the dollar on November 25.
SINGAPORE DOLLAR: The dollar was at 1.6921 Singapore dollars on Friday from 1.6964 the previous week.
SOUTH KOREAN WON: The won closed at 1,038.40 won per dollar Friday, compared with 1,041.20 won a week earlier.
Dealers said the won was expected to move within a limited range of between 1,035 won and 1,041 won, largely depending on the movement by the US currency in global markets.
TAIWAN DOLLAR: The Taiwan dollar rose 0.06 percent in the week to close at 33.530 against the US dollar. The local currency closed at 33.550 a week earlier.
THAI BAHT: The Thai baht fell sharply against the dollar over the past week in line with the Japanese yen and strong buying of the dollar after the European Central Bank hinted it will not hike rates again in the near future, dealers said. This widened the gap between the US and European rates, they added.
The Thai unit closed Friday at 41.43-45 baht to one dollar compared to last week's close of 41.20-22.
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