Asian currencies ended the week mixed against the dollar amid signs oof recovery in the US economy.
JAPANESE YEN: The yen lost ground against the dollar in Tokyo during the week as the greenback was recouping its recent losses following signs of economic recovery, dealers said. The Japanese unit stood at 92.07 to the dollar in New York late Friday, compared with 90.87 to the dollar there a week earlier.
It started the week on a strong note, peaking at 90.07 to the dollar on Tuesday, as better-than-expected US earnings reports sent Asian stocks higher and refreshed investors' appetite for riskier currencies than the safe-haven greenback. But then the yen slipped for three straight days against the dollar as it was sold for the euro although the US currency also lost ground against the single European unit.
Some dealers said the yen was sold amid a sense of caution following its recent rapid rises versus the dollar. The yen faced further selling pressure late Friday after the dollar got a lift from data showing a much stronger-than-expected 9.4 percent increase in existing US home sales, another positive sign for economic recovery.
Mizuho Research Institute senior economist Koji Takeuchi said that dollar-selling on the prospect of a prolonged ultra-easy US monetary policy was expected to "pressure the dollar and keep it top-heavy" in the coming week.
AUSTRALIAN DOLLAR: Bullish signs from China underpinned a strong week for the Australian dollar, with surging commodities imports by the Asian giant likely to drive the resources-based unit higher, dealers said. The Aussie closed Friday at 92.80 US cents, up from 92.25 US cents a week earlier. The currency has rallied to levels last seen in August 2008 after plunging below 64 cents last October.
Chinese growth figures of 8.9 percent for the year to September helped buoy trader confidence in the Australian dollar this week, said ANZ economist Melissa Vassallo. "This continuing recovery in the Chinese economy has been a key driver of this year's Australian dollar rally," Vassallo said.
"As we mentioned last week, Chinese imports of commodities from Australia have surged in recent months, helping to support Australian export growth and in turn, the Australian dollar." "This trend is likely to continue," she added.
NEW ZEALAND DOLLAR: The New Zealand dollar finished local trading Friday at 75.61 US cents, up from 74.62 the previous week. The kiwi reached a fresh 15-month high of 76.35 US cents on Thursday but BNZ expects the NZ dollar to be pegged back next week with the local central bank expected to keep interest rates unchanged at its review on Thursday.
But further ahead, the bank is forecasting the New Zealand currency would rise to 77 US cents by December and peak at 80 cents in the third quarter of next year. "Our view is we will see the currency trend higher, but I don't expect to see the same rapid appreciation we've seen over the past six months," BNZ currency strategist Danica Hampton said.
"The US dollar, while it may remain heavy, it won't dramatically decline at the same pace we've seen over recent months. At some point people will pause to reassess the strength and timing of the global recovery," she said. CHINESE YUAN: The yuan closed at 6.8285 to the dollar Friday on the over the counter market, compared with Thursday's close of 6.8292, and a closing price of 6.8268 to the dollar the week before. The central bank had set the yuan central parity rate at 6.8275 to the dollar Friday, compared with 6.8272 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 from 7.750 the previous week.
INDONESIAN RUPIAH: The rupiah ended at 9,435 to the dollar, up from 9,400 the week before.
PHILIPPINE PESO: The peso fell to 46.980 to the dollar on Friday from 46.660 a week earlier.
SINGAPORE DOLLAR: The Singapore dollar was at 1.3927 to the US dollar Friday from 1.3920 the week before.
SOUTH KOREAN WON: South Korea's won underwent correction during the week to close at 1,181.50 to the dollar, compared with 1,164.50 won a week earlier, as the US unit gained strength against regional currencies. The won fluctuated throughout the week amid short-dollar coverings by offshore players and the country's export settlements. Traders said the greenback was likely to move within a range of between 1,173 won and 1,185 won when the market reopens on Monday.
TAIPEI: The Taiwan dollar closed at 32.398 against the US dollar, down from 32.300 a week earlier.
THAI BAHT: The baht weakened slightly against the dollar in line with regional currencies over the past four-day trading week, dealers said. The Thai unit closed Thursday at 33.47-49 baht to the dollar compared to the previous week's close at 33.44-45.