Asian currencies ended the week mixed against the dollar, on concerns about the health of the global economy and a turbulent performance by world stock markets.
JAPANESE YEN: The yen strengthened during the week, as continued worries about the health of the global economy supported the safe-haven Japanese currency. The yen rose to 90.36 to the dollar compared with 91.12 a week earlier.
The yen was sold at the start of the year as hopes grew for economic stimulus steps from US president-elect Barack Obama, said Tetsuhisa Hayashi, head of forex dealing at Bank of Tokyo-Mitsubishi UFJ. "But expectations alone aren't enough to spark a lasting recovery in US stock prices," Hayashi added, referring to several days of losses on Wall Street.
The yen is likely to remain strong against the dollar on expectations the ailing US economy will continue to feel the fallout from the financial crisis. "In the near term, this is going to be the theme," said Emmanuel Ng, an analyst with Singapore's OCBC Bank.
AUSTRALIAN DOLLAR: The Australian dollar closed on Friday at 67.43 US cents, down from the previous week's close of 70.81 cents. ANZ Economics said heavy selling had brought the Australian dollar closer to fair value, and there was strong support for it to hold at around 64 US cents.
"We expect a wide trading range with intra-day volatility to dominate, but for the overall direction of the Australian dollar to remain on a downward bias," ANZ said in a market note.
The tentative stabilising in commodity prices augured well for the Australian unit, said ANZ, but fluctuations in global share markets and uncertainty over iron ore prices would weigh on the currency.
NEW ZEALAND DOLLAR: The New Zealand dollar ended the week at 54.70 US cents in local trading, sharply down from 59.19 the previous week.
Sentiment was soured during the week by the negative outlook of the New Zealand Institute of Economic Research's quarterly survey of business opinion.
Business confidence fell to levels last seen in the 1970s, and most believed the worst was yet to come. Murray Hindley, ANZ Institutional Bank chief foreign exchange, said comments by Standard & Poor's warning it could downgrade New Zealand's credit rating also had an impact.
CHINESE YUAN: On the over-the-counter market, the Chinese yuan ended at 6.8374 Friday to the dollar, compared with 6.8356 a week before. The central bank had set the yuan central parity rate at 6.8383 to the dollar Friday. 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 was at 7.759 to the dollar, from 7.757 a week earlier.
INDONESIAN RUPIAH: The rupiah ended at 11,225 to the dollar, down from 11,000 the week before.
PHILIPPINE PESO: The Philippine peso weakened to 47.20 to the dollar on Friday compared to 47.15 to the dollar on January 9.
SINGAPOREAN DOLLAR: The Singapore dollar was at 1.4907 to the US dollar on Friday from 1.4798 the previous week.
SOUTH KOREAN WON: The won closed at 1,359.0 won per dollar Friday, compared with 1,343.00 won a week earlier, after fluctuating throughout the week, mirroring local stock prices.
Dealers said businesses were likely to sell dollars for the won in the coming week in order to pay wages and bonuses in time for the three-day Lunar New Year holidays starting on January 25. They said the won would likely move within a range of between 1,300 won and 1,350 won when the market reopens on Monday.
TAIWAN DOLLAR: The Taiwan dollar fell to 33.501 against the US dollar from 33.160 a week earlier.
THAI BAHT: The Thai baht was relatively stable against the dollar over the week in quiet trading, dealers said. The Thai unit closed Friday at 34.85-86 baht to the dollar compared to the previous week's close of 34.83-85. They said the baht was likely to weaken and break 35.00 baht to the dollar.
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