Asian monies may continue to surge, despite warnings
Asian monies may continue to surge, despite warnings
SINGAPORE (AFP): Asian currencies are expected maintain their climb up this week despite warnings that regional economies, particularly Japan, have yet to show firm signs of recovery.
The Japanese yen, which rose to 117-levels against the greenback, provided the impetus for the overall higher tone of trade of Asian currencies.
The Singapore dollar received an added boost to 1.6800-level over remarks by a top monetary official that the unit would not be used to improve trade competitiveness.
But analysts were cautious, saying that any further foreign inflows that could support a stronger yen, causing regional units to rise in tandem, were unsustainable.
The strengthening of the yen over the past days was due to market uncertainty of a revival in Japan's economic growth and Japan's sizeable holdings of foreign assets, ANZ Investment Bank said in a report.
Japanese yen: The yen gained ground against the dollar last week in an upswing partly fueled by foreign investors looking to snap up rising Japanese shares, dealers said.
But its upside was capped by fears that the Japanese monetary authorities might step in to check its progress.
The Japanese unit fetched 118.21-24 to the dollar late Friday, up from 120.95-98 to the dollar a week earlier.
Australian dollar: the Aussie could benefit from an improving outlook in commodities markets in the week ahead, analysts said.
"A firmer tone to commodity prices should enable the Australian dollar to hold on to its recent gains," said Commonwealth Bank economist Michael Blythe.
The Australian dollar closed Friday at 64.28 US cents from 62.82 the week before.
Singapore dollar: the Singapore dollar ended higher against the US dollar over the week to 1.7030 from 1.7343 the previous week.
Hong Kong dollar: The Hong Kong dollar closed at 7.7478-7.7488 to the greenback compared with 7.7478-7.7488 a week ago.
Rupiah: The Indonesian rupiah was trading at Rp 8,660 to Rp 8,680 to the dollar towards close Friday, slightly stronger than the previous week's close of Rp 8,717 to the greenback after opening at about Rp 8,650.
Philippine peso: The Philippine currency closed one percent higher at 38.15 pesos to the dollar on Friday from 38.50 pesos a week ago.
South Korean won: The South Korean won strengthened against the U.S. dollar, closing the week at 1217.00 won, compared to the close of 1223.10 won last week.
Taiwan dollar: The Taiwan dollar rose 0.9 percent against the greenback over the week to end at 32.790 Saturday as foreign funds kept flowing into the island for investment in the bourse here, dealers said.
The currency, which moved all the way through over the week, was expected to further gain momentum over a short term.
The unit stood at 33.000 Tuesday, up from 33.010 from Monday. It rose to 32.952 Wednesday and 32.900 Thursday, and further gained strength to finish at 32.852 Friday.
Thai baht: The Thai baht rebounded in the holiday-shortened two-day trading week, closing Friday at 37.45-50 to the dollar compared to the previous week's close at 38.00-02.