Asian currencies end week up against dollar

Asian currencies end week
up against dollar
Agence France-Presse . Hong Kong

Asian currencies performed strongly against the dollar last week as the yen fluctuated on continuing concerns over the global economic downturn.
The yen fluctuated against the dollar in a holiday-shortened week, facing upward pressure as concerns persisted over global financial turmoil and the US economic downturn.
The Japanese currency stood at 95.29-32 against the dollar in Tokyo at the end of daytime trading on Friday, slightly off from 94.98-95.00 against the dollar a week earlier. After a public holiday on Monday, it hit the week’s low of 97.40 against the dollar on Tuesday.
But it rallied back to the week’s high of 94.72 against the dollar on Wednesday as investors feared the US Federal Reserve’s scheme to buy up to $800b in risky mortgage securities could upset its balance sheet.
The greenback was on the back foot on Friday as expectations mounted that the Federal Reserve will cut interest rates at its December 15-16 meeting.
Markets are expecting big interest rate cuts by the European Central Bank and the Bank of England next week to try to contain the recession.
The Australian dollar should not be hurt by an expected cut in interest rates last week but its fluctuating fortunes remain linked to global equity markets, analysts say.
The Australian dollar was trading late Friday at 65.63 US cents, up from 62.14 US cents the previous week.
A better performance in global and local equity markets had helped to improve risk appetite and support for the Australian dollar, ANZ Economics and Research said in a briefing note.
The New Zealand dollar ended the week at 55.17 US cents, up sharply from 52.88 the previous Friday.
The kiwi rose as the previous week’s volatility in global share markets eased, and the local bourse rose in the last four days of the week.
The local focus next week will be the central bank’s review of interest rates on Thursday, with expectations of a cut of at least one percentage point to combat the impact of the global economic crisis. Economists say the New Zealand dollar is highly likely to fall further from current levels.
The yuan closed at 6.8346 to the dollar Friday on the exchange-traded market, compared with a closing price of 6.8331 a week earlier.
On the over-the-counter market, it ended at 6.8349 to the dollar against 6.8280 the previous day.
The central bank had set the yuan central parity rate at 6.8349 to the dollar Friday, compared with 6.8292 on Thursday.
The People’s Bank of China allows a trading band of 0.5 per cent on either side of the midpoint.
The US-pegged Hong Kong unit was at 7.752 to the dollar, from 7.751 a week earlier.
The rupiah ended the week at 12,350 to the dollar, up from 12,550 seven says earlier.
The Philippines peso rose to 48.960 to the dollar on Friday afternoon from 49.82 on November 21.
The Singapore unit closed at 1.5074 to the dollar on Friday from 1.5318 a week before.
The won closed at 1,469 to the dollar Friday compared with 1,495 a week earlier.
After hitting a closing low of 1,513 on Monday the currency strengthened steadily over the week, helped by the purchase of local shares by foreign investors as the stock market rose.
The won was also expected to receive short-term support from news that South Korea recorded a $4.9b current account surplus in October.
Dealers said the currency is expected to trade between 1,440 and 1,490 early next week.
The Taiwan dollar rose 0.28 per cent in the week to November 28 to close at 33.295 against the US dollar. The local currency closed at 33.388 a week ago.
The Thai baht weakened against the dollar over the past week due to political uncertainty in Thailand and capital outflow, dealers said. The baht closed at 35.50-53 baht to one dollar Friday compared to last week’s close of 34.97-99.