Yen gains ground amid concern over U.S. economic slowdown
Yen gains ground amid concern over U.S. economic slowdown
HONG KONG (AFP): The yen strengthened against the dollar while
hopes grew of a forthcoming lift of Japan's "zero-rate" monetary
policy.
Softer US economic data is holding up the Australian dollar,
up 2.03 against the dollar on last week's figure.
The Hong Kong dollar dipped slightly against the greenback as
the Singapore dollar rose marginally.
The Japanese yen gained ground against the dollar during the
week amid concerns that an expected slowdown in the US economy
could lead to a real slump, dealers said.
The Japanese unit was quoted at 106.21 against the dollar late
Friday, compared with 106.60 a week earlier.
"Dollar-buying sentiment has been very weak," said Satoshi
Tate, a dealer at Sanwa Bank.
"A slowdown in the US economy has already been incorporated,
and now investors are worried that the slowdown would lead to a
serious slump," said Tate.
The yen was also supported by growing expectations that Japan
may lift its 16-month-old "zero-rate" monetary policy, dealers
said.
Looking at the positive aspects for the yen, "we can point to
growing expectations that Japan may lift its zero-rate policy,"
another dealer said.
Higher interest rates would increase the return on Japanese
assets and the demand for yen to buy them.
Softer US economic data has seen the Australian dollar move
from strength to strength and the momentum is set to continue in
the week ahead, brokers said.
Data released in the United States last week confirmed the
market view the economy is cooling and weakened the US dollar,
which in turn helped the Australian currency and others.
At the close of trading Friday the local currency was at 60.71
US cents, from 58.68 US cents last week.
On the Reserve Bank's trade weighted index, the Australian
dollar was at 54.0 points from 52.3 the week before.
The New Zealand dollar closed Friday worth 47.02 US cents, up
from 46.88 US cents the previous week.
The dollar had a bumpy ride Friday but its movements were on
the coat-tails of the aussie, a currency dealer said.
The Hong Kong dollar was trading at 7.793-7.794 to the
greenback Friday, marginally down from the previous week's
7.7926-7.7936.
The US dollar closed at 1.7250 Singapore dollars from 1.7255 a
week ago.
Dealers said the Singapore dollar will likely hold steady on
the back of the island-state's strong economic fundamentals.
The Taiwan dollar declined 0.2 percent against the greenback
over the week to close at 30.838 on Saturday, after the
government intervened to weaken the currency to boost Taiwan's
exports, dealers said.
The currency stood at 30.800 on Monday and was almost
unchanged to close at 30.801 on Tuesday. It finished at 30.815
Wednesday and lost ground Thursday to end at 30.838. The unit
weakened to 30.845 on Friday.
The Philippine currency closed at 42.595 pesos to the dollar
on Friday, from 42.465 pesos last June 9.
South Korea's won slightly weakened from 1,114.40 won to the
dollar a week ago to 1,116.20 won to the greenback Friday as
foreign investors started selling shares for profit-taking.
Dealers said the won was expected to weaken marginally in the
coming week.
The Indonesian rupiah strengthened over the week to close at
8,561 to the dollar Friday compared to last Friday's close of
8,623 to the greenback, following the central bank's interest
rate hike to shore up the currency.
The Thai baht weakened slightly against the dollar on the
week, due to strong demand for dollars by large Thai
conglomerates who needed to repay foreign-denominated debts,
dealers said.
The Thai baht closed Friday at 39.13-15 to the dollar,
compared to the previous week's close of 39.03-06.