Major Asian currencies ended the week mostly higher against the dollar with the Chinese yuan rising to new highs after news of faster-than-expected Chinese economic growth.
JAPANESE YEN: The Japanese currency was supported by a weak dollar during the past week, while market players in Asian trade were watching the direction of the Chinese economy and its yuan, dealers said.
The yen was quoted at 118.64 to the dollar late Friday from 118.58 to the dollar a week earlier. The yen started the week lower at 119 to the dollar in Asian trade but gained ground to mid-118 over a weak dollar which was under pressure from a strong European single currency.
"As market players continue selling the dollar, they tend to buy back Asian currencies, including the Japanese yen," Shigeru Nakane, senior client manager at Resona Bank, said. The euro gained further to 1.3612 dollars, compared to 1.3523 dollars a week earlier, edging up towards its all-time high against the greenback.
Dealers said market players remained cautious after the yuan rose to fresh highs against the dollar amid concern about faster-than-expected Chinese economic growth.
"Players were tending to hold the euro as the market became (more) sensitive about China's currency and its economy," said Hironobu Hagi, deputy general manager of Shinsei Bank's capital markets division.
"It may take some time before the euro revisits its record high against the dollar but that is now certainly in many market players' sights," he said.
AUSTRALIAN DOLLAR: The Australian dollar was trading strongly against a weaker greenback Friday and little was likely to unsettle that in the week ahead, dealers said. The Aussie was trading at 83.51 US cents at 5:00 pm Friday (0600 GMT) compared to 83.23 US cents the previous week.
CommSec chief equities economist Craig James said the Aussie had outperformed other major currencies so far in 2007.
James said while the biggest drivers of the Aussie dollar, were the weak greenback and strong outlook for the global economy, the coming week's inflation data could have some impact. "Overall, the Aussie dollar is more likely to hit 85 US cents rather than 80 US cents."
NEWZEALAND DOLLAR: The New Zealand dollar ended the week at 74.38 US cents, up from 73.45 US cents the previous Friday.
The kiwi hit a 25-year high of 74.91 US cents on Wednesday due to the continuing appeal of New Zealand's high interest rates and weakness in the US currency.
In the coming week the market will be focused on the central bank's decision on interest rates on Thursday.
Although all the data points to another rate rise, as threatened by bank governor Alan Bollard in March, some economists believe there has been sufficient tightening of monetary conditions by markets for him to hold off. The currency has risen 10 percent since March 8, and 90-day bank bills have risen sharply to more than eight percent.
However, other economists believe Bollard needs to keep raising rates until the overheated property market starts to cool.
CHINESE YUAN: The yuan closed at 7.7170 to the dollar Friday on the exchange-traded market, compared with Thursday's close of 7.7170, and a closing price of 7.7293 to the dollar the week before.
On the over-the-counter market, it ended at 7.7179 to the dollar against 7.7165 the previous day.
On Thursday, the yuan rose to 7.7165 to the dollar, its highest level since Beijing relaxed its forex regime in July 2005, after news that China's economy expanded a robust 11.1 percent year-on-year in the first quarter.
The central bank had set the yuan central parity rate at 7.7230 to the dollar Friday, compared with 7.7199 on Thursday.
The People's Bank of China allows a trading band of 0.3 percent on either side of the midpoint.
HONG KONG DOLLAR: The US-pegged Hong Kong dollar ended the week at 7.814, compared to 7.81395 a week earlier.
INDONESIAN RUPIAH: The rupiah ended the week higher at 9,087/9,092 to the dollar compared with 9,094/9,098 a week earlier.
PHILIPPINE PESO: The Philippine peso closed higher Friday at 47.65 against the greenback from 47.94 the previous week.
SINGAPORE DOLLAR: The dollar was at 1.5104 Singapore dollars, from 1.5168 a week earlier.
SOUTH KOREAN WON: The won closed higher at 927.50 to the dollar, compared with 929.20 a week earlier, as exporting firms sold their dollar earnings and foreign investors increased their investment in local stocks.
But the rise in the won's value was capped by reports that the government urged local banks and businesses to restrain themselves from borrowing foreign funds for speculative investment.
Some dealers said despite the government warnings, the won might further strengthen against the greenback as foreigners continue investing in the Korean bourse and exporters keep selling their dollar earnings.
TAIWAN DOLLAR: The Taiwan dollar closed lower Friday at 33.137 against the US dollar, compared with 33.106 a week earlier.
THAI BAHT: The Thai baht rose against the dollar during the holiday-shortened week as exporters dumped the greenback, which suffered fresh losses against the yen in Asian trade.
The Thai unit closed Friday at a nine-year high of 34.77-79 to the dollar, up from 34.94-96 a week earlier.
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