Asian currencies ended the week mixed against the US dollar, with the yen climbing but the Australian and New Zealand dollars down.
JAPANESE YEN: The yen has climbed to a near three-week high against the dollar as the market fretted over gloomy prospects for the US economy.
The Japanese currency stood at 115.31-34 to the dollar at the end of daytime trading in Tokyo on Friday, sharply up from 117.30-33 to the dollar a week earlier. It touched the week's high of 114.85 to the dollar earlier in the day.
Market players were watching a meeting of Group-of-Seven (G7) financial chiefs in Washington, betting it would refrain from taking any action to try to bolster the sagging greenback.
The yen would remain strong against the dollar "if a G7 statement refrains from referring to concern over the euro's strength," the business daily Nikkei said on its Internet edition.
"I don't expect the G7 will announce a strong enough message to curb the euro's strength, because if you look at economic fundamentals it is undeniable that eurozone growth is the fastest at the moment," said Mizuho Investors Securities analyst Hiroshi Sakurai. "We expect this meeting to be a non-event for the markets," said Julian Jessop of Capital Economics.
The US Commerce Department released weak housing starts data on Wednesday, rekindling expectations of a further cut in US interest rates.
The market will focus on US second-hand and new house sales figures due out on Wednesday and Thursday, dealers said. "If the slump in the housing sector is confirmed anew, it may further fuel concern over the US economic slowdown," Nikkei said.
AUSTRALIAN DOLLAR: The Australian dollar is expected to retreat from recent highs next week but remains on track to reach parity with the greenback in the longer term, dealers said.
The Australian dollar ended the week at 89.01 US cents at 5:00pm, down from the previous week's 89.73 after briefly hitting a fresh 23-year high of 90.74 on Monday. The Australian dollar had recorded eight straight weekly rises from 77.41 on August 17.
AMP Capital Investors chief economist Shane Oliver said dealers were displaying some risk aversion to the currency after its rapid rise.
All eyes next week will be on September quarter inflation data due out on October 24. A high reading is expected to force the Reserve Bank of Australia to lift interest rates in November to keep inflation within the bank's 2.0-3.0 percent target band.
However, Australia has a national election on November 24 and such a rate rise would be unprecedented in the country's political history.
Reserve Bank governor Glenn Stevens said earlier this year that he would not hesitate to lift rates if the action was warranted, regardless of political considerations.
NEW ZEALAND DOLLAR: The New Zealand dollar ended the week on 74.90 US cents, down from 77.02 US cents the previous week.
Dealers said traders were unwinding risky bets on currencies like the kiwi against the low-yielding yen.
CHINESE YUAN: The yuan closed at 7.5080 to the dollar Friday on the exchange-traded market, compared with Thursday's close of 7.5100, and a closing price of 7.5100 to the dollar the week before.
On the over-the-counter market, it ended at 7.5080 to the dollar against 7.5111 the previous day.
The central bank had set the yuan central parity rate at 7.5074 to the dollar Friday, compared with 7.5113 on Thursday. The People's Bank of China allows a trading band of 0.3 percent on either side of the mid-point.
HONG KONG: The US-pegged Hong Kong dollar ended the week at 7.75095 to the US unit, from 7.7526 a week earlier.
INDONESIA RUPIAH: The rupiah ended the week trading at 9,082/9,090 to the dollar compared 9,065/9,075 to the dollar a week earlier.
PHILIPPINE PESO: The Philippine peso weakened to 44.24 to the dollar on Friday afternoon from 44.15 to the dollar the previous week.
SINGAPORE DOLLAR: The dollar was at 1.4643 Singapore dollars Friday from 1.4649 the week before.
SOUTH KOREAN WON: The won was at 915.80 won per dollar Friday, compared with 918.30 won a week earlier, as the greenback weakened against major currencies in global markets.
Bank of Korea governor Lee Seong-Tae told the National Assembly on Friday that the central bank, whenever necessary, would resort to "smoothing operations" to curb the won's appreciation.
Dealers said the government might intervene if the dollar-won exchange rate threatens the 910 won level.
TAIWAN DOLLAR: The Taiwan dollar rose 0.03 percent in the week to October 19 to close at 32.572 against the US dollar. The local currency closed at 32.581 a week earlier.
THAI BAHT: The Thai baht changed little against the dollar over the past week as investors found few new leads in the market, dealers said. The Thai currency closed at 34.15-16 to the greenback, against 34.18-20 a week earlier.
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