Asian currencies were mixed against the dollar during the week as attention turned to economic data due out in the recession-hit United States, dealers said.
JAPANESE YEN: The yen moved narrowly against the dollar in Tokyo before the year-end and New Year holidays. The yen stood stronger at 90.28 against the dollar on Tuesday, the final day of trading for 2008 in Tokyo, compared with 90.52 the previous Friday.
The yen slightly eased against the dollar in Singapore, reaching 91.14 on Friday. Trading in Tokyo was to resume on Monday. Liquidity should gradually return to the market in the coming week when traders will be closely watching key US economic data as well as comments from the US Federal Reserve, United Overseas Bank Group senior treasury economist Thomas Lam said in Singapore on Friday. The United States will release December employment figures next Friday.
"I think there might be some positioning early next week ahead of the employment number, which might put some pressure on the dollar," Lam said. "In the long run, selling pressure on the dollar will grow further, reflecting the US economic situation," Tokyo-Mitsubishi UFJ dealer Osamu Takashima said.
AUSTRALIAN DOLLAR: In a holiday-shortened week, the Australian dollar closed Wednesday at 69.58 US cents, up from the previous week's 67.83 US cents. The Australian dollar was expected to remain around 70 US cents in the coming week after rising commodity prices supported the currency, dealers said.
"I think in the coming week it will maintain some kind of base at or around the 70 US cent level," CMC Markets forex dealer Tim Waterer told AFP. "I think it is going to be oscillating around that 70 US cent mark." Waterer said the main factors would be the strength in gold prices and confidence in the US equities market.
Westpac currency strategist Robert Rennie told Dow Jones Newswires that equity markets would remain the main driver for the currency. "I still question whether Aussie really has the power to move significantly above 70 US cents," he said.
NEW ZEALAND DOLLAR: The New Zealand dollar ended local trading in a holiday-shortened week on Wednesday at 57.84 US cents, down from 58.25 the previous week. In a tumultuous year for the currency, the kiwi dollar topped 82 US cents for periods in February and March before dropping below 52 cents in November.
CHINESE YUAN: The yuan closed stronger at 6.8204 to the dollar Wednesday on the exchange-traded market, compared with Tuesday's close of 6.8354, and a closing price of 6.8408 to the dollar the week before. On the over-the-counter market, it ended at 6.8230 to the dollar against 6.8353 the previous day.
The central bank had set the yuan's central parity rate at 6.8346 to the dollar Wednesday, compared with 6.8353 on Tuesday. The People's Bank of China allows a trading band of 0.5 percent on either side of the midpoint.
HONG KONG DOLLAR: The US-pegged Hong Kong unit weakened slightly to 7.751 to the dollar, from 7.750 a week earlier.
INDONESIAN RUPIAH: The rupiah ended at 11,130 to the dollar, strengthening from 11,150 the week before.
PHILIPPINE PESO: There was no trading all week in the Philippines due to a prolonged Christmas-New Year holiday. Trading resumes on January 5, 2009.
SINGAPOREAN DOLLAR: The Singapore dollar was weaker at 1.4544 to the US dollar from 1.4434 the week before.
SOUTH KOREAN WON: The won weakened to 1,321.0 won per dollar, compared with 1,299.0 won a week earlier. The won slumped 4.7 percent against the greenback on Friday alone, the first trading day of 2009, on expectations that intervention by financial authorities to support the local currency would ease at the start of the new year.
Financial institutions, which had delayed buying dollars at the request of government authorities at the end of 2008, came back strongly, snapping up the greenback to meet the demand from importers.
TAIWAN DOLLAR: The Taiwan dollar strengthened over the week to close at 32.860 against the US dollar on Wednesday. The local currency closed at 33.025 a week earlier. The market was closed Thursday and Friday for the New Year.
THAI BAHT: The Thai baht strengthened against the dollar amid light trading during a two-day week, as Prime Minister Abhisit Vejjajiva managed to deliver his first policy statement despite protests. The baht closed Tuesday at 34.79-34.81 baht to the dollar compared to last week's close of 34.99-35.01.
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