Asian currencies ended the week mixed against the dollar as dealers awaited a meeting of G20 finance ministers for clues on whether they would scale back emergency stimulus measures. The G20 vowed Saturday to maintain the measures to fight the world economic crisis, warning it was not over yet.
JAPANESE YEN: The yen traded in a tight range over the past week on mixed views over the prospects for a global economic recovery while investors awaited the outcome of a meeting of the Group of 20 finance chiefs. It stood at 93.01 yen to the dollar in New York late Friday, up from 93.59 there a week earlier.
In Tokyo, the yen started the week on a strong note, touching a seven-week high in the upper 92-yen level after the victory of the Democratic Party of Japan in August 30 polls increased expectations for political reform. But some investors later left the safe-haven currency, supported by rises in Asian shares.
Later in the week, the Japanese unit briefly visited a six-and-a-half-month high in the upper 91-yen level as worries about the weak US job market prompted buying of safe-haven assets. Investors stepped aside Friday as they waited for a weekend meeting in London of finance ministers and central bank chiefs from 20 major economies for clues on whether they will scale back emergency stimulus measures. "This meeting is unlikely to be a headline grabber but any comment on 'exit strategies' for major central banks would be received with interest," said Rabobank International analyst Adrian Foster.
Hideaki Inoue, senior forex dealer at Mitsubishi UFJ Trust and Banking, told Dow Jones Newswires: "The direction of the market is now toward risk avoidance" in the coming week to the benefit of the safe-haven yen.
AUSTRALIAN DOLLAR: The Australian dollar suffered a pullback during the week after the central bank retreated from warnings it would soon need to increase interest rates, holding them steady for the fifth month in a row, dealers said. The commodities-based Aussie closed Friday at 84.09 US cents, up from 84.07 US cents a week earlier.
It dipped below 82.50 US cents mid-week after Reserve Bank of Australia governor Glenn Stevens retreated from his assessment in August that the next move to the cash rate would be up as he left it unchanged at a 49-year-low of 3.0 percent. "Despite the domestic and international data results printing to the upside overall ... the market's disappointment in Stevens' less hawkish than hoped for statement weighed heavily on the Australian dollar, triggering a fall of over two US cents," said ANZ economist Amber Rabinov.
Data showing Australia grew a surprising 0.6 percent in the second quarter helped boost the dollar again, and there was more upside risk than downside in the coming week, she added.
NEW ZEALAND DOLLAR: The New Zealand dollar finished local trading Friday at 67.98 US cents, down from 68.65 the previous week. Some renewed turbulence in world equity markets saw volatile trading in the kiwi through the week.
In offshore trading early Thursday the kiwi dropped near 66.80 US cents, its lowest level in a fortnight, as risk appetite waned for high-yielding currencies such as the New Zealand dollar. In the week ahead the focus will be on the New Zealand central bank's review of interest rates.
The central bank is expected to leave the official cash rate unchanged at a record low 2.5 percent but investors are looking for shifts in the outlook from Reserve Bank of New Zealand governor Alan Bollard.
CHINESE YUAN: The yuan closed at 6.8300 to the dollar Friday, compared with Thursday's close of 6.8305 and a closing price of 6.8301 to the dollar the week before. The central bank had set the yuan central parity rate at 6.8310 to the dollar Friday, compared with 6.8307 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, little changed from 7.752 the week before.
INDONESIAN RUPIAH: The rupiah ended at 10,122 to the dollar, down from 10,055 a week earlier.
PHILIPPINE PESO: The peso rose to 48.62 to the dollar from 48.80 the previous week.
SINGAPOREAN DOLLAR: The dollar was at 1.4416 Singapore dollars from 1.4422 the week before.
SOUTH KOREAN WON: The won closed at 1,241.50 to the dollar Friday, up from 1,244.40 won a week earlier, after moving in a narrow range throughout the week in accordance with regional stock prices. North Korea announced Friday that it had entered the final phase of uranium enrichment, a second way of making bombs, and it was building more nuclear weapons. But the market brushed the news aside, with the won gaining strength by 4.40 won to the dollar on Friday. Some traders suspected financial authorities might be intervening to prevent the dollar from weakening below 1,240 won. Dealers said the won was likely to remain rangebound in the coming week amid a lack of fresh momentum.
TAIWAN DOLLAR: The Taiwan dollar closed at 32.905 against the US dollar, up from 32.925 a week earlier.
THAI BAHT: The Thai baht weakened against the dollar over the past week amid moderate trading as traders suspected that the Bank of Thailand may have intervened in the market, dealer said. The Thai unit closed Friday at 34.07-08 baht to one dollar compared to the previous week's close of 34.01-02.