Fresh crisis fear downs yen, other units mixed

HONG KONG, Jan 25: Fears of a resurgence of financial unrest Asia due to turmoil on the Brazilian markets and fresh speculation that China may devalue its currency saw the yen weaken in a see-saw last week, reports AFP.

The Australian unit finished the week higher on the back of bullish forecasts for the Australian economy.

JAPANESE YEN: The yen see-sawed against the dollar before ending the week on a weak note amid worries about a possible resurgence of financial unrest in Asia.

It stood at 113.68-72 to the dollar late Friday, slightly off from 113.44-47 to the dollar a week earlier.

"For the time being, the rate is expected to move without a clear sense of direction," said dealer at Sanwa Bank.

The yen slumped to 114.13-16 the dollar late Monday as foreign investors and domestic institutions saw heavy upside resistance against the Japanese unit.

But it then climbed back for three straight sessions as investors were heartened by prospects of smooth disposal of bad loans by Japan's troubled banks.

Speculation abroad about the devaluation of the Chinese currency put the yen under selling pressure on Friday. The heavy US trade deficit with Japan also threatened to batter the yen.

AUSTRALIAN DOLLAR: The Australian dollar closed the week stronger thanks to a growing number of bullish signals for the Australian economy.

The currency closed Friday at 63.76 US cents, up from 63.22 last week after testing the 64-cent level during offshore trading late in the week, according to dealers.

Several economic surveys this week showed the Australian economy was likely to continue growing at a better pace than previously expected.

But in the week ahead the market is expected to look for signs prices will not follow as consumer price index data for the December quarter is released Thursday.

Bankers trust economist Kieran Daviews said the drop in the Australian dollar over the past year had raised fears there would be an increase in inflation.

"These concerns now appear misplaced, with inflation remaining low. Looking forward, we expect only a slight increase in inflation, with inflation slowly rising about 2 per cent by late 1999," he said.

At the close Friday, the Australian dollar was also buying 54.91 euro cents from 53.90 last week, and on the Reserve Bank's trade weighted index it closed the week at 55.3 from 54.6 last week.

SINGAPORE DOLLAR: The Singapore dollar ended the week higher against the US dollar to 1.6795 from 1.6820 the previous week.

INDONESIAN RUPIAH: The Indonesian rupiah closed the week higher at 8,893 compared to last week's closing of 9,090 rupiah.

The currency strengthened to around 8,500 on Thursday due to the strengthening Japanese yen but was later undermined by reports of riotings across the country during the Muslim holiday.

TAIWAN DOLLAR: The Taiwan dollar slipped 0.1 per cent against the greenback over the week to settle at 32.297 Friday amid concerns over possible devaluation of Chinese yuan.

The currency was expected to move between 32.270 and 32.350 in the short-term, dealers said.

It stood at 32.263 Monday and weakened to 32.291 Tuesday to strong demand for US unit. It became firmer at 32.263 Wednesday and remained stable at 32.261 Thursday.

HONG KONG DOLLAR: The Hong Kong unit closed Friday at 7.7485-7.7495, compared to 7.7477-7.7487 the previous Friday.

THAI BAHT: The Thai baht strengthened slightly against the dollar, riding out worries over the impact of the Brazilian financial crisis and market rumours that China would soon devalue its currency, dealers said.

The Thai unit closed Friday at 36.75-80 baht compared to the previous week's close of 37.15-20 bath.

SOUTH KOREAN WON: The won slightly gained against the US dollar, closing the week at 1,180 won per dollar from, 1,183.5 won to the greenback a week before.

The won strengthened despite reports that the government intervened to prevent the currency from appreciating too fast in order to boost the sagging exports.

The exchange rate is expected to move between 1,170 won and 1,190 won per dollar in the week ahead, dealer said.

NEW ZEALAND DOLLAR: The New Zealand dollar closed worth 54.15 US cents Friday.

The New Zealand dollar shed some of its New York gains as it continued to track its Australian counterpart on a bumpy ride, NZPA reported Friday.

"The Kiwi had been following the Aussie down. There have been no real flows," a dealer said.

PHILIPPINE PESO: The Philippine currency closed 1.2 per cent lower Friday at 38.68 pesos to the dollar, the bankers' association of the Philippines said.

Trading ranged from 38.73 pesos to the greenback on a turnover of 170.7 million dollars.

The unit closed at 38.255 pesos to the dollar Thursday.