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.