Asian currencies ended the week mostly down against the US dollar despite growing concerns over the world's biggest economy and data from Washington showing rising unemployment.
JAPANESE YEN: The yen bounced back to a one-and-a-half-month high against the dollar towards the end of the week as players sold the greenback on concerns over deteriorating US employment conditions. The Japanese currency peaked at 105.67 to the dollar before ending daytime trading at 106.48-50 on Friday, up from 108.79-81 a week earlier.
It clawed its way back from the week's low of 109.09 on Wednesday when the dollar was bought on an overnight plunge in oil prices in New York. Meanwhile, the dollar was pressured as weak retail results and data suggesting mounting job losses heightened fears on the US economic outlook.
Figures showing higher jobless claims in the past week and more losses in private-sector employment weighed on investor sentiment. The fragile employment situation was further highlighted by a Labour Department report on Friday that showed US employers slashed 84,000 nonfarm jobs in August and the jobless rate jumped to a five-year high of 6.1 percent.
The report marked the eighth consecutive month of shrinking nonfarm payrolls, and was worse than expected by private economists. Yuzo Sakai, currency trading manager at Tokyo Forex and Ueda Harlow, predicted before the Labour Department report that the yen could rise again.
"Many players appear to be keen to sell high-yield currencies such as the euro against the yen amid growing speculation that a global economic slowdown may prompt central banks in many countries to cut rates," Sakai told Dow Jones Newswires.
AUSTRALIAN DOLLAR: The Australian currency was likely to have another bad week after slumping on a strengthened greenback and falling commodity prices, dealers said on Friday.
By Friday the Aussie was trading at about 81.77 US cents-its weakest level in more than a year and well down from the previous week's 86.10 US cents.
The currency has dropped some 17 percent against the US dollar since reaching a 25-year high of 98.49 US cents in mid July and dealers said it could have further to go.
NEW ZEALAND DOLLAR: The kiwi ended the week at 66.60 US cents, sharply down from 70.52 the previous Friday. The currency tumbled midweek and again at the end of the week, reaching a low of 65.90 on Friday before making up some ground later in the day.
Renewed volatility in world share markets on Thursday and Friday following weak US economic data and gloomy growth forecasts in Europe saw a flight from high-yielding currencies such as the New Zealand dollar.
The volatility saw investors liquidate carry trades, in which funds are borrowed in low interest rate currencies such as the yen to buy high yielding currencies such as the kiwi, said Murray Hindley, ANZ Institutional Bank chief foreign exchange dealer.
CHINESE YUAN: The yuan closed at 6.8382 to the dollar Friday on the exchange-traded market, compared with Thursday's close of 6.8353, and a closing price of 6.8409 to the dollar last week. On the over-the-counter market, it ended at 6.8422 to the dollar against 6.8365 the previous day. The central bank had set the yuan central parity rate at 6.8436 to the dollar Friday, compared with 6.8410 on Thursday. The People's Bank of China allows a trading band of 0.5 percent on either side of the midpoint.
HONG KONG DOLLAR: The Hong Kong dollar was at 7.808 to the greenback, compared with 7.807 the week before.
INDONESIAN RUPIAH: The rupiah ended the week's trading at 9,395 to the dollar compared with 9,155 a week earlier.
PHILIPPINE PESO: The Philippines peso fell to 46.825 to the dollar on Friday afternoon from 45.925 the previous week.
SINGAPORE DOLLAR: The greenback was up at 1.4348 Singapore dollars on Friday from 1.4157 the previous week.
SOUTH KOREAN WON: The won continued its fall against the dollar, ending Friday at 1,117.80 to the greenback compared with 1,089.0 on August 29.
The currency has fallen 16 percent against the US unit so far this year, losing almost three percent in the past week alone. But it rose on Friday for the second straight day, on suspected dollar-selling by the authorities Financial markets have been gripped by fears of a "September crisis" as treasury bonds held by foreigners and worth 6.71 billion dollars mature next week.
TAIWAN DOLLAR: The Taiwan dollar fell 1.13 percent by Friday to close at 31.875 against the US dollar. The local currency was at 31.520 a week ago.
THAI BAHT: The Thai baht slid against the dollar over the past week as heightened political turmoil pushed investors to sell the local currency. The Thai baht closed Friday at 34.58-60 baht to the dollar compared to last week's close of 34.20-22.
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