Asian currencies ended the week down against the dollar, with the yen sinking sharply amid fears for the world's second-biggest economy following a slew of bad data.
JAPANESE YEN: The yen tumbled to six-week lows against the dollar as Japanese Finance Minister Shoichi Nakagawa's resignation added to worries over the nation's prospects for economic recovery. The Japanese currency stood at 94.09 against the dollar late Friday, down from 91.19 a week earlier.
Fears over Asia's biggest economy have deepened following a raft of dismal data, including figures released on Monday showing that the economy contracted at an annualised pace of 12.7 percent in the fourth quarter of 2008.
The yen dipped when Nakagawa resigned on Tuesday following claims that he was drunk at a Group of Seven meeting in Rome. There was also slow progress in a parliamentary budget debate as the opposition controls the upper house.
A weaker yen could benefit Japanese exporters such as electricals and automobiles. But Ryohei Muramatsu, a treasury manager for Asia at Commerzbank, warned: "The government's lack of ability to manage risks was exposed to the world. It led to the yen's weakness, which is not helpful for the Japanese economy."
Embattled Prime Minister Taro Aso, under fire for failing to provide strong leadership, is due to meet US President Barack Obama in Washington on Tuesday. "Many market participants are worried that a 'gap' between Japan and the United States (in terms of initiative) would bare itself again depending on the contents of their talks and press conferences," the Nikkei Quick News reported.
AUSTRALIAN DOLLAR: The Australian dollar could dip below 63 US cents next week as the US dollar strengthens its position as a safe-haven currency, dealers said. The Australian dollar closed on Friday at 63.86 US cents, down from the previous week's close of 65.77 US cents, and at a two-week low.
A declining Euro and US bank nationalisation talk was buoying the US dollar, which was having flow-on effects for Australia, said Westpac's Jonathan Cavenagh. The sell-off in the euro had sparked a more general rally in the US dollar, making it "the current safe-haven currency of choice," added ANZ economist Amber Rabinov.
"Dragged lower by the euro, the trading range for the Australian dollar has shifted down a notch," said Rabinov.
As long as global growth and commodity prices remained poor the Australian dollar was likely to remain between 60 and 70 US cents, with a downside risk, said Shane Oliver, chief AMP Capital economist.
NEW ZEALAND DOLLAR: The New Zealand dollar ended the week at 50.36 US cents, down from 52.45 US cents the previous week. Over the next week, the kiwi is expected to remain hostage to sentiment about the world economy and financial markets, dealers said.
CHINESE YUAN: On the over-the-counter market, the yuan ended at 6.8372 to the dollar Friday, compared with Thursday's finish of 6.8354, and a closing price of 6.8335 to the dollar the week before. The central bank had set the yuan central parity rate at 6.8357 to the dollar Friday, compared with 6.8369 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 unit was at 7.755 to the dollar, from 7.752 a week earlier.
INDONESIAN RUPIAH: The rupiah ended at 12,100 to the dollar, down from 11,850 the week before.
PHILIPPINE PESO: The Philippines peso fell to 48.300 to the dollar on Friday afternoon from 47.120 on February 13.
SINGAPOREAN DOLLAR: The Singaporean dollar was at 1.5384 to the US dollar on Friday from 1.5095 the previous week.
SOUTH KOREAN WON: The won sank sharply to 1,506.50 won per dollar Friday, its lowest in nearly three months, compared with 1,404.20 won a week earlier. The won's fall came as offshore players dumped the local currency and foreign investors continued local stock sales amid renewed jitters over the global financial crisis.
Financial authorities apparently intervened to bolster the won, releasing some 600 million dollars to help prop up the South Korean currency, Yonhap news agency said. Barring government intervention, there is little scope for the won to regain strength, a foreign bank dealer said.
If it falls below the 2008 lowest point of 1,525 won per dollar, it would be hard to tell where the won would find support, the dealer said.
TAIWAN DOLLAR: The Taiwan dollar fell 2.23 percent in the week to February 20 to close at 34.808 against the US dollar. The local currency closed at 34.050 a week earlier.
THAI BAHT: The Thai baht slipped against the dollar over the past week in line with regional currencies amid heavy trading and negative data on exports. The baht closed Friday at 35.71-73 baht to the dollar compared to 35.14-16 baht the previous week.