Major Asian currencies ended the week down against the US dollar on predictions of a US interest rate hike and as foreign investors remained wary of Thailand's political stability.
JAPANESE YEN: The yen dipped to three-and-a-half-months low against the dollar as warnings of inflation by US and Japanese central bank chiefs added to prospects of US interest rate hikes. The Japanese currency stood at 108.06-08 to the dollar late Friday, down from 106.03-05 to the dollar a week earlier, after hitting the week's low of 108.09 to the dollar.
It slipped past the 108 mark in Tokyo on Friday after Bank of Japan governor Masaaki Shirakawa warned that the risk of global inflation was rising. The dollar was already bolstered after US Federal Reserve Chairman Bernanke said on Monday that "upside risks" to inflation are forcing the Fed to be more vigilant following the latest surge in oil prices.
The week's trading ended with caution before Group of Eight (G8) finance ministers issued a statement at the end of a two-day meeting on Saturday in Osaka. "For the prospects on higher US interest rates, (market players) are watching if the authorities will make it clearer that they want to curb inflation," Bank of Tokyo-Mitsubishi UFJ chief analyst Osamu Takashima said on Friday.
The Bank of Japan said on Friday it was holding its benchmark interest rate at.
AUSTRALIAN DOLLAR: The Australian dollar is expected to consolidate next week on the back of a hawkish statement from the central bank on interest rates, dealers said.
The Australian dollar was trading at 93.88 US cents at 5.00 pm (0800 GMT) Friday, more than two cents down on the previous week's 95.96 US cents. Despite the fall, dealers said a speech from Reserve Bank governor Glenn Stevens on Friday had underlined the central bank's willingness to take a tough stance on interest rates to contain inflation, supporting the Aussie dollar.
The central bank chief said that interest rates had a role to play in helping dampen the impact of a dramatic rise in Australia's terms of trade due to the China-driven resources boom.
"This is why a tight monetary policy setting is essential," Stevens said. "It is why the Reserve Bank has lifted interest rates, even as the (US) Federal Reserve was reducing them." Dealers said the speech indicated interest rates were likely to stay high, meaning the Australian dollar would remain a high-yielding currency.
NEW ZEALAND DOLLAR: The New Zealand dollar ended local trading Friday at 75.02 US cents, down from 76.54 at the end of the previous week.
The kiwi was near five-month lows due to a resurgence in the US dollar and retail data released Friday which added to evidence the New Zealand economy is slowing.
CHINESE YUAN: The yuan closed at 6.9015 to the dollar Friday on the exchange-traded market, compared with Thursday's close of 6.9064, and a closing price of 6.9228 to the dollar last Friday.
On the over-the-counter market, it ended at 6.9018 to the dollar against 6.9075 in the previous day. The central bank had set the yuan central parity rate at 6.9018 to the dollar Friday, compared with 6.9015 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-linked Hong Kong dollar finished the week at 7.8132 to the greenback compared with 7.8108 the week before.
INDONESIAN RUPIAH: The rupiah ended the week's trading at 9,305 to the dollar compared to 9,310 to the dollar a week earlier.
PHILIPPINES PESO: The Philippines peso fell to 44.410 to the dollar on Friday afternoon from 44.135 on June 6.
SINGAPORE DOLLAR: The dollar was at 1.3775 Singapore dollars on Friday from 1.3665 the previous week.
SOUTH KOREAN WON: The won closed at 1,041 won per dollar on Friday, compared with 1,023.50 won on Thursday of the previous week before the market closed for a national holiday the following day.
The won ended lower on Friday for a third consecutive session, due to high oil prices and selling of domestic shares by foreigners.
TAIWAN DOLLAR: The Taiwan dollar fell 0.38 percent in the week to June 13 to close at 30.451 against the US dollar. The local currency closed at 30.335 a week ago.
THAI BAHT: The Thai baht dropped slightly against the dollar over the past week, amid active trading despite the Bank of Thailand's intervention on Monday, dealers said. The Thai unit fell sharply on Monday to 33.45 baht to one dollar as foreign investors fled the Thai stock market amid concerns about the kingdom's political stability. The baht closed on Friday at 33.16-18 baht to one dollar compared to the last week's close of 33.12-13.
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