Asian currencies ended the week mostly mixed against the dollar after the US announced plans to help homeowners hit by the subprime mortgage crisis and hints of another cut in interest rates.
JAPANESE YEN: The yen weakened against the dollar over the past week as the greenback drew support from hopes of another US interest rate cut and a White House plan to provide relief to struggling American homeowners, dealers said.
The Japanese currency stood at 111.27-32 to the dollar in late Tokyo trade on Friday, down from 110.28-30 a week earlier, after hitting the week's low of 111.43 to the dollar. The White House on Thursday unveiled a plan to allow struggling US homeowners with subprime mortgages to re-finance adjustable-rate loans or freeze their current interest rates for five years.
"The proposal to help subprime borrowers will revive the US housing market and combined with a rate cut, will help the economy to pick up," said Mark Wan, chief analyst at Hang Seng Investment Services Ltd. All eyes will be on the US Federal Reserve for a key interest rate decision on Tuesday.
Hopes of a rate cut lifted Wall Street, providing a boost for the greenback. The benchmark Fed funds rate currently stands at 4.50 percent. Market views are divided on whether the central bank will cut rates by another 25 basis points or 50 basis points next week.
AUSTRALIAN DOLLAR: The Australian dollar ended the week at 87.85 US cents at 5:00pm (0600 GMT), lower than the previous week's 88.64 US cents. It is likely to remain stable in the coming week, dealers said.
AMP Capital Investors chief economist Shane Oliver said the Aussie currency lost ground following the central Reserve Bank of Australia's relaxation of its tightening bias and as base metal prices fell. Dealers said all eyes were now fixed on next week's decision on interest rates by the US Federal Open Market Committee.
NEW ZEALAND DOLLAR: The New Zealand dollar ended local trading on Friday at a five month high of 77.82 US cents, up from 77.35 the previous week.
Thursday's warning by central bank governor Alan Bollard that interest rates would have to remain high for longer to contain inflation, underpinned the kiwi late in the week. The hawkish stance of the New Zealand central bank contrasted with that in many other developed countries, including recent cuts in some countries, such as Canada and Britain.
ANZ Bank said the New Zealand dollar was attractive compared with many other currencies, because of a relatively high official interest rate of 8.25 percent. In carry trades investors borrow a low interest rate currency such as the yen to invest in higher yielding assets such as the NZ dollar.
CHINESE YUAN: The yuan closed the week at 7.4004 to the dollar on the exchange-traded market, compared with Thursday's close of 7.4117, and a closing price of 7.4048 to the dollar the week before. On the over-the-counter market, it ended at 7.4030 to the dollar against 7.4095 the previous day.
The central bank had set the yuan central parity rate at 7.4091 to the dollar Friday, compared with 7.4205 on Thursday. The People's Bank of China allows a trading band of 0.3 percent on either side of the midpoint.
HONG KONG: The US-pegged Hong Kong dollar closed the week at 7.797 to the greenback, from 7.753 a week earlier.
INDONESIA RUPIAH: The rupiah ended the week trading at 9,267/9,278 to the dollar compared 9,365/9,375 to the dollar a week earlier.
PHILIPPINE PESO: The Philippines peso strengthened to 41.740 to the dollar on Friday afternoon compared to 42.750 on November 30.
SINGAPORE DOLLAR: The dollar ended the week at 1.4461 Singapore dollars from 1.4473 the week before.
SOUTH KOREAN WON: The dollar on Friday weakened to 919.20 won, compared with 921.10 won a week earlier, as foreign investors increased their buy in the local bourse, tracking rises in global stock markets. The central Bank of Korea on Friday kept its key interest rate unchanged at five percent for the fourth straight month.
It has said growth will slow to 4.7 percent next year from this year's estimated 4.8 percent due to surging oil prices and a global credit crunch which could hit exports.
TAIWAN DOLLAR: The Taiwan dollar fell 0.13 percent in the week to December 7 to close at 32.309 against the US dollar. The local currency closed at 32.268 a week earlier.
THAI BAHT: The Thai baht slightly rose against the dollar over the past week as local exporters sold the greenback, dealers said. The Thai unit closed at 33.71-73 to the dollar on Friday, marginally up from 33.84-85 a week earlier.