Committed to PEOPLE'S RIGHT TO KNOW
Vol. 5 Num 917 Mon. December 25, 2006  
   
Business


Major Asian currencies tend upwards against dollar


Major Asian currencies ended the past week mixed with an overall upward bias against the US dollar in thin and lacklustre pre-Christmas trading.

The dollar had fended off a downward revision of the US economy late in the week with Asian traders now focusing on Japan's industrial output figures due out Tuesday to provide the next lead.

JAPANESE YEN: The Japanese yen further dropped against the dollar in the past week, with dealers.

The yen further lost its value to 118.30 to the dollar late Friday, compared with 117.91 a week earlier.

"A view is prevailing that it is difficult for the US Federal Reserve to cut its rate very soon while at the same time it is difficult for the Bank of Japan to hike its rate soon either," said Hiroshi Sakurai, analyst at Mizuho Investors Securities.

AUSTRALIAN DOLLAR: The Australian dollar is expected to remain range-bound next week, supported by high commodity prices and interest rates, but there are signs the 80 US cent barrier may crumble in early 2007, dealers said.

The domestic unit was trading at 78.66 US cents at 5:00 pm Friday (0600 GMT), up from the previous week's 78.17 US cents.

CHINESE YUAN: The yuan ended at 7.8163 to the US dollar in the over-the-counter (OTC) market Friday, compared with Thursday's 7.8170.

In the exchange-traded market, the yuan closed at 7.8151 to the dollar, compared with Thursday's close of 7.8175, according to a Guangdong-based trader.

The central bank set the yuan central parity rate at 7.8189 to the dollar Friday, compared with 7.8190 Thursday.

SINGAPORE DOLLAR: The dollar was at 1.5400 Singapore dollars from 1.5404 the previous week.

THAI BAHT: The Thai baht fell against the dollar over the past week due to the government's draconian currency control measures, which triggered panic selling in the stock market.

The army-backed government introduced the new capital rules on Tuesday as the baht jumped to a new nine-year high of 35.12 to the dollar on Monday.

The Thai baht closed at 36.40-48 to the greenback on Friday, sharply down from 35.25-27 a week earlier.