Asian currencies rally on weakened U.S. outlook
Asian currencies rally on weakened U.S. outlook
HONG KONG (AFP): Currencies in the Asia-Pacific region strengthened against the greenback in a week that saw U.S. Federal Reserve chairman Alan Greenspan warn of a weakened outlook for the American economy.
Japanese yen rallied against the dollar by some 15 percent in the past week to hit its highest level in 14 months as the U.S. unit kept tumbling on foreign exchange markets on bleak prospects for the U.S. economy.
The Japanese unit fetched 117.18-12 to the dollar late Friday, sharply up from 134.77-80 to the dollar a week earlier, after soaring for four straight days.
It started the week lower, falling to 135.74-77 to the dollar on Monday due to disappointment over a weekend Group-of-Seven meeting, which failed to come up with decisive measures to reverse the yen's weakness in recent months.
But it bounced back on Tuesday as Tokyo share prices rallied on expectations of a new economic stimulus package. It gained further on Wednesday as Japan's parliament moved closer to legislation on measures to save the ailing banking industry.
The yen jumped further after U.S. Federal Reserve chairman Alan Greenspan warned the outlook for the U.S. economy next year "has weakened measurably" because of global financial turmoil, causing the dollar's tailspin around the world.
Australian dollar is set to consolidate its recent gains in the week ahead, but will closely watch a string of price and activity data in the United States, economists said.
The Aussie rallied strongly over the week, closing the session Friday at 61.57 U.S. cents, 2.2 cents higher than a week ago.
On the Reserve Bank's trade weighted index, the Australia dollar closed the week at 54.1 points.
NEW ZEALAND DOLLAR: The New Zealand dollar closed sharply up at 52.50 U.S. cents against its close a week earlier at 50.02 cents.
Singapore dollar rose to 1.6485 to the U.S. dollar from 1.6875 in line with the Japanese yen.
Hong Kong dollar closed Friday at 7.747-7.748 to the greenback compared to 7.748-7.749 the previous week.
Indonesian rupiah strengthened to close Friday at 9,000 rupiah to the greenback, compared to last week's closing of 10,725 rupiah.
Friday's close was the highest since the political disturbances in May which sent the rupiah tumbling to the 15,000 level against the greenback.
Philippine peso gained 1.7 percent to close at 43.25 pesos to the U.S. dollar on Friday from 43.99 to the dollar on October 2.
South Korean won: the won strengthened from 1,388 won per dollar a wee# before to 1,343 won to the greenback on Saturday as the dollar weakened against the yen and South Korea's current account surplus kept piling up.
South Korea's foreign reserves rose to 46.98 billion dollars at the end of September from 45.09 billion a month earlier, the central Bank of Korea said.
Taiwan dollar: the Taiwan dollar climbed to 32.823 against the greenback, compared to 33.710 the previous week, after local foreign currency dealers scrambled to settle accounts anticipating further rises.
Thai baht strengthened against the dollar over the week to Friday on a stronger Japanese yen and expectations the U.S. may further slash interest rates.
The Thai unit closed at 38.52-57 baht to the dollar, compared to the previous week close's at 39.53-58.