Asian currencies ended the week mostly higher against the dollar amid continuing concerns over the state of the US economy and the health of its financial sector.
JAPANESE YEN: The Japanese yen firmed over the past week as the dollar slumped on continued market jitters over possible massive losses by major US banks. The yen rose to 106.22 to the dollar Friday, up from 107.24 a week earlier.
"Markets are increasingly worried that the US economic and financial turmoil could trigger a slowdown in Europe and even Japan," said Ryohei Muramatsu, treasury manager at Commerzbank.
Weak US jobs data and a worse-than-expected industrial activity index for the US mid-Atlantic region lifted the yen against the US unit. The dollar received support from speculation that the US Federal Reserve may be forced to raise interest rates after a jump in consumer inflation.
But the greenback was unlikely to move much higher in Asian trade, said Saburo Matsumoto, chief forex strategist at Sumitomo Trust Bank. "Unless share prices settle and the markets clear up credit worries, the dollar will not find support," he said.
Analysts said a decision Tuesday by Japan's central bank to leave its benchmark interest rate on hold at 0.5 percent, as expected, had a muted impact.
AUSTRALIAN DOLLAR: The Australian dollar is expected to continue its climb towards parity with the greenback in the coming week after hitting a 25-year-high, traders said.
At 5:00pm (0700 GMT) Friday, the Australian dollar was trading at 97.29 US cents, up from the previous week's close of 96.05 US cents.
"A rebound in the US dollar, prompted by a fall in oil prices and a recovery in equities weighed on the Australian dollar late in the week," ANZ economists said in a note.
"However, the Australian dollar continues to find good support above 97 US cents". Harley Salt, head of sales trading at IG Markets, said the Aussie dollar had hit a new 25-year high of 98.51 US cents on Tuesday. "Traders still think parity will be reached in the coming months, the Aussie dollar has already gained 10 US cents this year," he said.
NEW ZEALAND DOLLAR: The New Zealand dollar ended local trading Friday at 76.35 US cents, up from 75.61 at the end of the previous week. The dollar was at 77.20 US cents on Thursday before dropping back as US sentiment improved on the back of a stock rally inspired by a sharp drop in oil prices. Dealers said the focus would now turn to the central bank's decision on interest rates due Thursday although analysts expect no change to the 8.25 percent official cash rate.
CHINESE YUAN: The yuan closed at 6.8204 to the dollar Friday on the exchange-traded market, compared with Thursday's close of 6.8300, and a closing price of 6.8335 to the dollar the week before. On the over-the-counter market, it ended at 6.8169 to the dollar against 6.8213 the previous day.
The central bank had set the yuan central parity rate at 6.8238 to the dollar Friday, compared with 6.8189 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-linked Hong Kong dollar finished the week at 7.798 to the greenback compared with 7.803 the week before.
INDONESIAN RUPIAH: The rupiah ended the week at 9,160 to the dollar, down from 9,153 to the dollar a week earlier.
PHILIPPINES PESO: The peso rose to 44.455 to the dollar on Friday from 45.66 the previous week.
SINGAPORE DOLLAR: The dollar was at 1.3531 Singapore dollars on Friday from 1.3603 the previous week.
SOUTH KOREAN WON: The won weakened to 1,013.80 to the dollar Friday from 1,002.30 won a week earlier, as foreign investors kept dumping local stocks.
Government authorities were believed to have sold up to 700 million dollars on Friday alone to boost the embattled won. Oil prices eased somewhat over the past week but the continuous selling of local stocks by foreigners depressed the Korean unit, dealers said.
TAIWAN DOLLAR: The Taiwan dollar closed at 30.360 against the greenback, up from 30.392 a week earlier.
THAI BAHT: The baht rose against the dollar over a holiday-shortened week amid quiet trading as the Bank of Thailand hiked its benchmark interest rate on Wednesday, dealers said. The Thai unit closed Friday at 33.31-33 baht to the dollar, up from the previous week's close of 33.66-68.
Comments
Comments are closed.