Asian currencies ended the week mainly up against the dollar, on stronger oil prices and renewed fears about the health of the US economy.
JAPANESE YEN: The Japanese yen surged against the dollar in the past week, as fresh concerns about the US economy and fears about US mortgage finance giants Fannie Mae and Freddie Mac cooled investor sentiment for the greenback. The yen stood at 108.93 to the dollar on Friday, up from 110.28 a week ago.
"Fears about the US economy are growing again," said Sumitomo Trust Bank chief strategist Saburo Matsumoto, adding that the fallout from the financial crisis on Wall Street had not yet run its course.
The yen shrugged off news that Japan's trade surplus shrank 86.6 percent in July amid weak demand in the United States, with investors taking some comfort from a rebound in overall exports.
Dealers said the dollar might come under further selling pressure if upcoming US economic indicators, including next week's monthly employment report, disappoint markets.
AUSTRALIAN DOLLAR: The Australian dollar was likely to rise in the coming week after being oversold, analysts said. The Australian dollar was trading on Friday at about 87.88 US cents, up more than one cent from 86.29 a week earlier.
The currency could test the 88.50-cent level if gold continues to climb in New York trading, CMC Markets Trader Tim Waterer told Dow Jones Newswires.
"If we see a repeat of that again, the Aussie could push higher," he said. Shane Oliver, chief economist at AMP Capital Investors said the Aussie "appears to be undergoing a short term bounce after becoming very oversold and this may see it rise back to around 90 US cents."
"However, the tide is now going out for the Aussie as the combination of falls in Australian interest rates and a correction in commodity prices suggests the currency likely has more downside ahead of it over the next six months or so (possibly to around 80 US cents)." But Oliver said the long-term trend in the currency was likely to remain up in response to the long-term rising trend in commodity prices. ANZ strategist Patricia Gacis said the dollar had rebounded during the week on surging oil and gold prices and a weaker greenback.
Against the US dollar, the Aussie was now sitting at the top of its technical range, she said.
"Oil and other commodity prices will need to move higher for the AUD/USD to continue this momentum. The next upside resistance lies around 90.00 US cents," she said.
NEW ZEALAND DOLLAR: The New Zealand dollar ended the week of local trading at 71.87 US cents, up from 69.95 the previous Friday.
The kiwi moved slightly lower after reaching two-week highs in early trading, amid new turmoil in world markets. It was helped by a surge in crude oil prices, which took some of the steam out of the US dollar's recent recovery, and there was selling pressure from investors optimistic that interest rates in New Zealand will fall.
The ANZ bank said the kiwi's early gains were tentative, and could be seen as a partial rebound from oversold levels. "Along with the oil price rise, the broader commodities basket also gained strongly, so it is not surprising the New Zealand dollar also gained," a statement from the ANZ said.
CHINESE YUAN: The yuan closed at 6.8347 to the dollar Friday on the exchange-traded market, compared with Thursday's close of 6.8434, and 6.8750 a week ago. On the over-the-counter market, it ended at 6.8333 to the dollar against 6.8442 in the previous day.
The central bank had set the yuan central parity rate at 6.8357 to the dollar Friday, compared with 6.8518 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-linked Hong Kong dollar finished the week at 7.81 to the greenback compared with 7.804 the week before.
INDONESIAN RUPIAH: The rupiah ended the week at 9,147 to the dollar, up from 9,180 a week earlier.
PHILIPPINES PESO: The peso fell to 45.65 to the dollar from 45.310 the previous week.
SINGAPORE DOLLAR: The greenback was at 1.4054 Singapore dollars on Friday from 1.4150 a week earlier.
SOUTH KOREAN WON: The won fell to a 44-month low against the dollar Friday, closing at 1,062.50 won to the greenback, compared with 1,039.80 won on Thursday of the holiday-shortened previous week. The won has fallen almost 12 percent against the dollar so far this year. Dealers said demand for the greenback from refiners and foreign stock investors outweighed suspected intervention by authorities on Friday.
They said the dollar might climb as high as 1,100 won in the coming week.
TAIWAN DOLLAR: The Taiwan dollar ended the week at 31.370 against the US dollar, down from 31.330 a week earlier.
THAI BAHT: The baht fell against the greenback over the past week, dropping to a nine-month low due to heavy buying of the dollar by importers and foreign banks, dealers said.
But Bank of Thailand governor Tarisa Watanagase said on Tuesday that the bank was ready to act if the Thai unit were to fluctuate too much. The baht closed on Friday at 33.91-94 baht to the dollar, as compared to last week's close of 33.83-85.