Asian currencies ended the week mostly flat against the dollar with markets tending to domestic concerns and feeling on the strength of the greenback mixed.
JAPANESE YEN: The yen in the past week lost earlier gains to the dollar, which was supported by robust US economic data and ahead of the highly anticipated improvement in US payrolls, dealers said. The Japanese yen stood at 121.86 to the dollar Friday, down from 121.16 yen a week ago.
Dealers said the market may test the 122-yen level next week amid a brightening outlook for the US economy. On Friday, views on the greenback remained mixed after US gross domestic product (GDP) growth was revised to a 0.6 percent annualised pace, the slowest for more than four years. But the dollar drew support from the Chicago purchasing managers index of factory activity in the Midwest, which jumped to 61.7 points, pointing to a strengthening of economic activity.
"The consensus is that the US economy is weak enough to create high levels of uncertainty over its future," said Hironobu Hagi, a deputy general manager at Shinsei Bank. "There is some momentum in the market to test the 122-yen level but most players are taking a wait-and-see stance ahead of the US payroll figures," Hagi said before the employment data was released later on in the day. Dealers also said the yen was being weighed on by political concerns following the suicide of Japan's scandal-hit farm minister.
AUSTRALIAN DOLLAR: The Australian dollar is expected to remain rangebound next week, with local interest rates likely to remain on hold and market attention focused on developments in China, dealers said.
The Aussie was trading at 82.87 US cents at 5:00pm Friday, almost a cent up on the previous week's 81.95 US cents. CommSec chief equities economist Craig James said the interest rate differential between Australia and the US looked set to remain steady for the foreseeable future. James did not expect falls in the Chinese share market caused by a government hike on charges for stock trades to have a major impact on the Australian currency.
"The Aussie dollar appears comfortably ensconced in an 81-84 US cent range and there are few signs of the currency breaking out of the straitjacket any time soon," he said. "The Federal Reserve isn't in a rush to cut interest rates while the Reserve Bank isn't in a rush to raise rates. "And while there is some uncertainty about the outlook for the Chinese share market, the Chinese economy is expected to keep motoring at, or above, a 10 percent annual pace."
NEW ZEALAND DOLLAR: The New Zealand dollar ended the week at 73.96 US cents, up sharply from 72.55 the previous Friday. The kiwi surged against the US currency late in the week for technical reasons, even as a survey showing a fall in business confidence was released. On Thursday next week, eyes will be on the central bank decision on interest rates after it hiked rates by a quarter percentage point at each of its last two reviews.
Most economists expect rates to be kept steady at 7.75 percent this time. But a Wellington dealer said the currency should be underpinned by a hawkish statement on the outlook and the differential between New Zealand rates and those in other developed markets.
CHINESE YUAN: The yuan closed at 7.6460 to the dollar Friday on the exchange-traded market, compared with Thursday's close of 7.6457, and a closing price of 7.6537 to the dollar the week before. On the over-the-counter market, it ended at 7.6473 to the dollar against 7.6466 the previous day. The central bank had set the yuan central parity rate at 7.6497 to the dollar Friday, compared with 7.6506 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 US-pegged Hong Kong dollar ended the week at 7.8097, from 7.824 a week earlier.
INDONESIAN RUPIAH: The rupiah ended the week's trading weaker at 8,830/8,840 to the dollar compared to 8,740/8,750 at the end of last week.
PHILIPPINE PESO: The Philippine peso was at 46.05 to the dollar on Friday afternoon from 46.05 to the dollar on May 25.
SINGAPORE DOLLAR: The dollar was at 1.5296 Singapore dollars Friday from 1.5269 the week before.
SOUTH KOREAN WON: The won closed at 928.40 won per dollar Friday, compared with 928.30 won a week earlier. Dealers said the dollar-won rate rebounded slightly on Friday as foreign investors locked in on gains in the stock market and transferred the proceedings abroad while banks bought the greenback. The dollar-won is likely to move between 926 and 931 won when the market reopens on Monday, they said.
TAIWAN DOLLAR: The Taiwan dollar rose 0.69 percent in the week to June 1 to close at 33.009 against the US dollar. The local currency closed at 33.239 a week earlier.
THAI BAHT: The Thai baht was stable against the dollar over the past week as investors were relieved that no violent protests broke out following a court ruling banning ousted premier Thaksin Shinawatra from politics, dealers said. The Thai currency closed at 34.56-58 to the dollar, unchanged from a week earlier. The local unit still traded at a nine-year high against the greenback.