HONG KONG—Asian currencies ended the week mixed against the dollar as concerns over the strength of the United States economic recovery saw investors become more risk averse and retreat from higher-yielding currencies.
JAPANESE YEN: The yen see-sawed against the dollar as investor appetite for riskier currencies waxed and waned, dealers said.
The Japanese currency rallied to 90.08 to the dollar in New York late Friday from 91.42 a day earlier as a slump in US share prices curbed risk tolerance and prompted investors to buy back the two safe-haven units in exchange for the euro.
The rate was higher than 92.07 to the dollar in New York the previous week.
But, hours earlier in Tokyo, the Japanese unit ended daytime trading lower at 91.11 as both the yen and the dollar were sold for riskier currencies due to rising regional stock markets and signs of US economic improvement.
The yen touched the week's local low of 91.93 to the dollar in Tokyo on Tuesday when the greenback gained ground with investors selling higher-yielding currencies due to a decline in stocks and commodity prices.
The dollar also rose against the yen the same day amid growing speculation that the US Federal Reserve was preparing to lay the groundwork for an eventual rate hike.
But the yen bounced back to the week's local high of 90.81 to the dollar on Thursday, amid fresh worries over the US economic recovery following the news of a surprise fall in September new home sales.
The market is expected to focus on key economic data in the coming week as well the Fed's policy board meeting on Tuesday. The Bank of Japan (BoJ) left its key policy rate unchanged at 0.1 percent on Friday.
The BoJ seems less likely than the Fed to raise interest rates, Sumitomo Mitsui Banking economist Etsuko Yamashita said.
"If the market pays attention to this and US economic indicators turn upward, the yen may weaken against the dollar while investors return to buy risky assets," she said.
AUSTRALIAN DOLLAR: The Australian dollar pulled back from a prolonged rally this week, as spooked investors became more risk averse, dealers said.
The commodities-based Aussie closed Friday at 91.45 US cents, down from 92.80 US cents a week earlier.
"After looking comfortable at low 90-cent levels through last week, a bout of risk aversion globally and a read on local inflation that did nothing for rates market has seen the Australian dollar come off this week," said ANZ economist Warren Hogan.
"The pullback this week has long been foreshadowed as gains in financial markets get ahead of the economic recovery."
Australia unveiled its lowest inflation in 10 years last week, cutting the chances of a big rate hike when the central bank meets on Tuesday.
Hogan said the Aussie was unlikely to take a bearish turn until Chinese demand for resources slowed and the US dollar staged a sustained rally, and would stay above 86 US cents in the medium term.
NEW ZEALAND DOLLAR: The New Zealand dollar finished local trading Friday at 73.24 US cents, down sharply from 75.61 the previous week.
A renewed bout of stock market uncertainty midweek saw a dip in investors' appetite for high-yielding currencies such as the New Zealand dollar.
The kiwi fell to a three-week low of 71.60 US cents on Thursday due to the risk aversion and comments from New Zealand's central bank that interest rate rises were not to be expected before the second half of next year.
Sentiment turned positive for the New Zealand currency at the end of the week after news the US economy was growing again.
CHINESE YUAN: The yuan closed at 6.8275 to the dollar Friday on the over the counter market, compared with Thursday's close of 6.8280, and a closing price of 6.8285 to the dollar the week before.
The central bank had set the yuan central parity rate at 6.8281 to the dollar Friday, compared with 6.8285 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 unit ended the week unchanged at 7.751.
INDONESIAN RUPIAH: The rupiah ended at 9,590 to the dollar, down from 9,435 the week before.
PHILIPPINE PESO: The peso fell to 47.63 to the dollar from 46.980 to the dollar a week earlier.
SINGAPORE DOLLAR: The Singapore dollar was at 1.3957 to the US dollar Friday from 1.3927 the previous week.
SOUTH KOREAN WON: The won closed Friday at 1,182.5 to the dollar, almost unchanged from 1,181.5 on November 23.
The local currency fluctuated during the week but strengthened significantly Friday to end up 13.5 won from the previous day.
Dealers said strong gross domestic product growth data from the United States revived investors' appetite for riskier currency assets.
TAIPEI: The Taiwan dollar ended at 32.535 against the US dollar, down from 32.398 a week earlier.
THAI BAHT: The baht gained against the dollar over the past week after it moved in a narrow range in line with regional currencies, dealer said.
The Thai unit closed Friday at 33.43-44 baht to the dollar compared to the previous week's close of 33.47-49.
