Yen gains ground amid concern over U.S. economic slowdown<\/p>\n
HONG KONG (AFP): The yen strengthened against the dollar while
\nhopes grew of a forthcoming lift of Japan's \"zero-rate\" monetary
\npolicy.<\/p>\n
Softer US economic data is holding up the Australian dollar,
\nup 2.03 against the dollar on last week's figure.<\/p>\n
The Hong Kong dollar dipped slightly against the greenback as
\nthe Singapore dollar rose marginally.<\/p>\n
The Japanese yen gained ground against the dollar during the
\nweek amid concerns that an expected slowdown in the US economy
\ncould lead to a real slump, dealers said.<\/p>\n
The Japanese unit was quoted at 106.21 against the dollar late
\nFriday, compared with 106.60 a week earlier.<\/p>\n
\"Dollar-buying sentiment has been very weak,\" said Satoshi
\nTate, a dealer at Sanwa Bank.<\/p>\n
\"A slowdown in the US economy has already been incorporated,
\nand now investors are worried that the slowdown would lead to a
\nserious slump,\" said Tate.<\/p>\n
The yen was also supported by growing expectations that Japan
\nmay lift its 16-month-old \"zero-rate\" monetary policy, dealers
\nsaid.<\/p>\n
Looking at the positive aspects for the yen, \"we can point to
\ngrowing expectations that Japan may lift its zero-rate policy,\"
\nanother dealer said.<\/p>\n
Higher interest rates would increase the return on Japanese
\nassets and the demand for yen to buy them.<\/p>\n
Softer US economic data has seen the Australian dollar move
\nfrom strength to strength and the momentum is set to continue in
\nthe week ahead, brokers said.<\/p>\n
Data released in the United States last week confirmed the
\nmarket view the economy is cooling and weakened the US dollar,
\nwhich in turn helped the Australian currency and others.<\/p>\n
At the close of trading Friday the local currency was at 60.71
\nUS cents, from 58.68 US cents last week.<\/p>\n
On the Reserve Bank's trade weighted index, the Australian
\ndollar was at 54.0 points from 52.3 the week before.<\/p>\n
The New Zealand dollar closed Friday worth 47.02 US cents, up
\nfrom 46.88 US cents the previous week.<\/p>\n
The dollar had a bumpy ride Friday but its movements were on
\nthe coat-tails of the aussie, a currency dealer said.<\/p>\n
The Hong Kong dollar was trading at 7.793-7.794 to the
\ngreenback Friday, marginally down from the previous week's
\n7.7926-7.7936.<\/p>\n
The US dollar closed at 1.7250 Singapore dollars from 1.7255 a
\nweek ago.<\/p>\n
Dealers said the Singapore dollar will likely hold steady on
\nthe back of the island-state's strong economic fundamentals.<\/p>\n
The Taiwan dollar declined 0.2 percent against the greenback
\nover the week to close at 30.838 on Saturday, after the
\ngovernment intervened to weaken the currency to boost Taiwan's
\nexports, dealers said.<\/p>\n
The currency stood at 30.800 on Monday and was almost
\nunchanged to close at 30.801 on Tuesday. It finished at 30.815
\nWednesday and lost ground Thursday to end at 30.838. The unit
\nweakened to 30.845 on Friday.<\/p>\n
The Philippine currency closed at 42.595 pesos to the dollar
\non Friday, from 42.465 pesos last June 9.<\/p>\n
South Korea's won slightly weakened from 1,114.40 won to the
\ndollar a week ago to 1,116.20 won to the greenback Friday as
\nforeign investors started selling shares for profit-taking.<\/p>\n
Dealers said the won was expected to weaken marginally in the
\ncoming week.<\/p>\n
The Indonesian rupiah strengthened over the week to close at
\n8,561 to the dollar Friday compared to last Friday's close of
\n8,623 to the greenback, following the central bank's interest
\nrate hike to shore up the currency.<\/p>\n
The Thai baht weakened slightly against the dollar on the
\nweek, due to strong demand for dollars by large Thai
\nconglomerates who needed to repay foreign-denominated debts,
\ndealers said.<\/p>\n
The Thai baht closed Friday at 39.13-15 to the dollar,
\ncompared to the previous week's close of 39.03-06.<\/p>",
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