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.