Asian currencies fall against dollar
Monday, 18 June 2007
HONG KONG, June 17 (AFP): Asian currencies ended the week mostly lower against the dollar after rock-bottom Japanese interest rates were left unaltered and the likelihood of a rise in Australian rates receded.
JAPANESE YEN: The yen sank to a four-and-a-half year low against the dollar during the week as Japan's central bank kept its super-low interest rates unchanged, dealers said. The yen stood at 123.00 yen to the dollar Friday, down from 121.28 a week earlier, crossing the 123-yen line for the first time since December 2002.
The Bank of Japan Friday unanimously left interest rates at 0.5 per cent, the lowest among major economies. While the decision was widely expected amid tepid inflation, some analysts had predicted a split vote.
The yen's slide against the dollar was also due to inflationary pressures in the United States, which could prompt the US Federal Reserve to raise interest rates again from 5.25 per cent after a one-year pause.
AUSTRALIAN DOLLAR: The Australian dollar is expected to struggle against the greenback next week as expectations that an interest rate hike is imminent recede, dealers said.
The Aussie was trading at 83.73 US cents at 5:00 pm Friday (0600 GMT), well down on the previous week's 84.37 US cents.
The currency's retreat followed a speech from Reserve Bank governor Glenn Stevens that markets interpreted as meaning rates may rise between now and early 2008, but not in the next two or three months.
NEW ZEALAND DOLLAR: The New Zealand dollar ended the week at 75.25 US cents, slightly down from 75.47 the previous Friday.
The central bank intervened in the foreign exchange market to sell New Zealand dollars Monday for the first time since the currency was floated after it hit a high of 76.40 US cents.
CHINESE YUAN: The yuan closed at 7.6242 to the dollar Friday on the exchange-traded market, compared with Thursday's close of 7.6288, and a closing price of 7.6545 to the dollar the week before. On the over-the-counter market, it ended at 7.6254 to the dollar against 7.6430 the previous day.
HONG KONG DOLLAR: The US-pegged Hong Kong dollar ended the week at 7.817, from 7.816 a week earlier.
INDONESIAN RUPIAH: The rupiah ended the week trading at 9,043/9,048 to the dollar, compared to 9,080/9,090 to the dollar a week earlier.
PHILIPPINE PESO: The Philippine peso was at 46.390 to the dollar Friday afternoon, compared to 46.57 on June 8.
SINGAPORE DOLLAR: The dollar was at 1.5412 Singapore dollars from 1.5376 the week before.
SOUTH KOREAN WON: The won closed at 928.50 won per dollar Friday, compared with 931.00 won a week earlier.
The dollar-won moved within a narrow box Friday because of jitters that government authorities might intervene to stop the won's appreciation against the Japanese yen.
The dollar-won is likely to be confined to a limited range of between 926 and 929 won in the coming week as concerns over possible government intervention loom large over the market, dealers said.
TAIWAN DOLLAR: The Taiwan dollar fell 0.46 per cent in the week to June 15 to close at 33.142 against the US dollar. The local currency closed at 32.990 a week earlier.
THAI BAHT: The Thai baht edged down against the dollar over the past week amid worries over political tensions between the country's junta and deposed premier Thaksin Shinawatra, dealers said.
The Thai baht closed at 34.65-66 to the dollar, slightly down from 34.59-60 a week earlier. The local currency remained at a nine-year high against the greenback.
JAPANESE YEN: The yen sank to a four-and-a-half year low against the dollar during the week as Japan's central bank kept its super-low interest rates unchanged, dealers said. The yen stood at 123.00 yen to the dollar Friday, down from 121.28 a week earlier, crossing the 123-yen line for the first time since December 2002.
The Bank of Japan Friday unanimously left interest rates at 0.5 per cent, the lowest among major economies. While the decision was widely expected amid tepid inflation, some analysts had predicted a split vote.
The yen's slide against the dollar was also due to inflationary pressures in the United States, which could prompt the US Federal Reserve to raise interest rates again from 5.25 per cent after a one-year pause.
AUSTRALIAN DOLLAR: The Australian dollar is expected to struggle against the greenback next week as expectations that an interest rate hike is imminent recede, dealers said.
The Aussie was trading at 83.73 US cents at 5:00 pm Friday (0600 GMT), well down on the previous week's 84.37 US cents.
The currency's retreat followed a speech from Reserve Bank governor Glenn Stevens that markets interpreted as meaning rates may rise between now and early 2008, but not in the next two or three months.
NEW ZEALAND DOLLAR: The New Zealand dollar ended the week at 75.25 US cents, slightly down from 75.47 the previous Friday.
The central bank intervened in the foreign exchange market to sell New Zealand dollars Monday for the first time since the currency was floated after it hit a high of 76.40 US cents.
CHINESE YUAN: The yuan closed at 7.6242 to the dollar Friday on the exchange-traded market, compared with Thursday's close of 7.6288, and a closing price of 7.6545 to the dollar the week before. On the over-the-counter market, it ended at 7.6254 to the dollar against 7.6430 the previous day.
HONG KONG DOLLAR: The US-pegged Hong Kong dollar ended the week at 7.817, from 7.816 a week earlier.
INDONESIAN RUPIAH: The rupiah ended the week trading at 9,043/9,048 to the dollar, compared to 9,080/9,090 to the dollar a week earlier.
PHILIPPINE PESO: The Philippine peso was at 46.390 to the dollar Friday afternoon, compared to 46.57 on June 8.
SINGAPORE DOLLAR: The dollar was at 1.5412 Singapore dollars from 1.5376 the week before.
SOUTH KOREAN WON: The won closed at 928.50 won per dollar Friday, compared with 931.00 won a week earlier.
The dollar-won moved within a narrow box Friday because of jitters that government authorities might intervene to stop the won's appreciation against the Japanese yen.
The dollar-won is likely to be confined to a limited range of between 926 and 929 won in the coming week as concerns over possible government intervention loom large over the market, dealers said.
TAIWAN DOLLAR: The Taiwan dollar fell 0.46 per cent in the week to June 15 to close at 33.142 against the US dollar. The local currency closed at 32.990 a week earlier.
THAI BAHT: The Thai baht edged down against the dollar over the past week amid worries over political tensions between the country's junta and deposed premier Thaksin Shinawatra, dealers said.
The Thai baht closed at 34.65-66 to the dollar, slightly down from 34.59-60 a week earlier. The local currency remained at a nine-year high against the greenback.