Asian currencies ended the week mostly lower against the dollar amid mixed views on whether the worst was over for the global economy.
JAPANESE YEN: The yen continued an upswing against the dollar in sluggish trading in the past week, amid mixed prospects of a global economic recovery, dealers said.
It stood at 95.19 against the dollar in New York late Friday, up from 98.43 against the dollar a week earlier. In Tokyo trading, the yen hit a weekly high of 94.99 against the dollar on Friday, as anticipation of dismal eurozone economic data depressed the greenback against the Japanese unit. The yen clawed its way back in Tokyo from Monday's weekly low of 98.82 on hopes of improvement in the global economy.
The dollar fell back as the growing US federal deficit, worse-than-expected April US retail sales and increased claims for jobless benefits in the United States worried market players, dealers said. While some traders expect the dollar to decline as easing financial worries reduce safe-haven demand for the currency, others believe the prospect of a recovery in the US economy will support the greenback.
"We are in a difficult situation regarding sentiment towards the dollar. If asked to judge whether it is a 'buy' or 'sell,' I would say 'buy,'" Hachijuni Bank dealer Sho Komamura said. "Credit fears have receded. The market has already braced itself for bad economic figures while business sentiment and stock prices are recovering," he said.
But the Nikkei Quick News said on Friday, "The market has mixed views that the economy is getting out of its worst phase and that it will remain in protracted doldrums." "If the sense of alarm against the economy grows, it may lower risk tolerance among investors and lead to yen buying/dollar selling," it said.
AUSTRALIAN DOLLAR: The Australian dollar could get a boost next week from the federal budget presented by the government on May 12, analysts said.
The Australian dollar closed Friday at 75.57 US cents, down from the previous week's close of 75.71 US cents.
"The AUD/USD has moved into a higher trading range for now, but the trading range remains wide," said ANZ economist Alex Joiner. "We recommend that natural sellers of AUD look to extend hedging duration if AUD/USD lifts above 0.7600.
"The 2009-10 federal budget could have a positive influence on the AUD. One of the major reasons is the impact of the increased issuance of government bonds to finance the projected budget deficits," he said.
NEW ZEALAND DOLLAR: The New Zealand dollar finished local trading Friday at 59.30 US cents, slightly down from 59.36 the previous week.
The kiwi tracked sentiment in global share markets, rising to a four-month high of 61.12 US cents early in the week, before losing ground again as shares retreated. "We are pretty much going to be in the hands of US dollar movements and whether risk is on, or off the table," said ANZ Bank chief foreign exchange dealer Murray Hindley.
CHINESE YUAN: The yuan closed at 6.8258 to the dollar Friday, compared with Thursday's close of 6.8250 and a closing price of 6.8218 to the dollar the week before.
The central bank had set the yuan central parity rate at 6.8247 to the dollar Friday, compared with 6.8250 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 ended the week at 7.751, unchanged from a week earlier.
INDONESIAN RUPIAH: The rupiah ended weaker at 10,460 to the dollar compared with 10,375 the week before.
PHILIPPINE PESO: The Philippine peso traded lower at 47.64 to the dollar on Friday afternoon from 47.250 to the dollar on May 8, the last trading day of the previous week.
SINGAPORE DOLLAR: The dollar was at 1.4627 Singapore dollars Friday from 1.4646 dollars the previous week.
SOUTH KOREAN WON: The won closed at 1,257.0 to the dollar Friday, down from 1,247 a week earlier, after fluctuating throughout the week in accordance with changes in the local stock market.
Dealers said the South Korean currency was likeely to move between 1,247 and 1,258 won when the market reopens on Monday. They said downside risks were limited by concerns over possible intervention by authorities to support the greenback as exporters are waiting to sell their dollars.
TAIWAN DOLLAR: The Taiwan dollar closed at 32.950 against the US dollar, up from 33.040 a week earlier.
THAI BAHT: The baht continued to climb against the dollar over past week because of ongoing fund flows into the Thai stock market, and in line with regional currencies, dealers said. The Thai unit closed Friday at 34.55-56 baht to the dollar compared with the previous week's close of 34.90-92.