Asian currencies move up against dollar

Asian currencies ended the week mainly up against the US dollar as the Australian dollar hit an 18-year high and the yen strengthened over a predicted increase in euro-zone borrowing rates.
JAPANESE YEN: The yen slightly firmed against the dollar over the week, rising to lower 122 yen levels at one point as the market anticipated further rises in euro-zone borrowing costs, dealers said.
The Japanese currency stood at 123.15 to the dollar late on Friday, modestly higher than 123.42 to the dollar a week earlier. It peaked at 122.37 to the dollar on Tuesday when the US unit was pressured by doubts that the Federal Reserve will hike US interest rates again in the near future and by renewed jitters about international security after a series of failed car bombings in Britain.
The yen later slid as market players kept focusing on the gap of interest rates in Japan and the United States, dealers said.
On Friday the yen weakened against the dollar as the greenback got a boost from data showing a robust US services sector and from a private job survey. The Institute of Supply Management's ISM non-manufacturing index rose to 60.7 percent, well above the 50 percent level signifying growth.
"The dollar attracted temporary buy-backs" after the data, said Kikuko Takeda, currency research manager at the Bank of Tokyo-Mitsubishi UFJ.
"This is unlikely to be a new trend," she said, adding that the euro was still the strongest market performer, followed by the dollar and then the yen due to interest rate differentials.
AUSTRALIAN DOLLAR: The Australian dollar was expected to continue its rise against the greenback, after reaching a new 18-year high of 86.09 US cents on Thursday. The Aussie was trading at 85.68 US cents at 5:00 pm Friday (0600 GMT), up from the previous week's 85.04 US cents.
NAB Capital said the Australian dollar's direction in the week ahead was tied to US pay-rolls figures, with solid US data likely to test support for the Australian dollar at 85.40 US cents. Weaker data could see the Aussie revisit 86.00 US cent level. CommSec chief equities economist Craig James said it was important to keep the Aussie's gains in perspective.
"While the currency is at multi-year highs against the greenback and Japanese yen, gains have been much more limited against the Euro and Pound Sterling and the Aussie has weakened against the New Zealand dollar," he said.
NEW ZEALAND DOLLAR: The New Zealand dollar ended the week at 78.21 US cents, up from 76.92 the previous on Friday.
The kiwi continued to hit new highs for the 22 years since it was freely floated in 1985, hitting a high of 78.80 early on Friday. US interest rate yields have been falling and the differential between the US yields and many other countries widening, increasing pressure to sell US dollars, said HSBC Auckland-based treasurer Trevor Pye.
CHINESE YUAN: The yuan closed at 7.6007 to the dollar on Friday on the exchange-traded market, compared with Thursday's close of 7.5977, and a closing price of 7.6213 to the dollar the week before. On the over-the-counter market, it ended at 7.6010 to the dollar against 7.5984 the previous day. The central bank had set the yuan central parity rate at 7.6155 to the dollar Friday, compared with 7.6178 on Thursday.
The People's Bank of China allows a trading band of 0.5 percent on either side of the midpoint.
HONG KONG DOLLAR: The US-pegged Hong Kong dollar ended the week at 7.81755, from 7.816 a week earlier.
INDONESIAN RUPIAH: The rupiah ended the week trading at 9,030/9,035 to the dollar, compared to 9,045/9,055 to the dollar a week earlier.
PHILIPPINE PESO: The Philippine peso traded higher at 46.08 to the dollar on Friday afternoon from 46.24 on July 29.
SINGAPORE DOLLAR: The dollar was at 1.5202 Singapore dollars on Friday from 1.5324 the previous week.
SOUTH KOREAN WON: The won closed at 919.7 won per dollar, compared to 923.80 won a week, as exporters and offshore investors continued to unload their dollar holdings. South Korean government authorities have voiced concern over the won's appreciation but failed to stop its gain, which was also fuelled by expectation of an interest rate rise.
TAIWAN DOLLAR: The Taiwan dollar fell 0.23 percent in the week to July 6 to close at 32.809 against the US dollar. The local currency closed at 32.735 a week earlier.
THAI BAHT: The Thai baht surged against the dollar over the past week amid active trading sparked by capital inflow into the local stock market and gains in line with regional currencies, dealers said. The Thai unit hit a 10-year high on Thursday in onshore trading at 33.95 baht to one dollar. The Thai baht slightly retreated to close at 34.01-02 to the dollar compared to last week's close of 34.53-54.