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Asian forex markets

mostly lower after

Fed rate rise

HONG KONG: There was little clear direction in the forex markets last week with the gap between regional interest rates and the United States still encouraging investors to buy the greenback.

The US Federal Reserve raised the fed funds target rate by 0.25 of a percentage point to 5.75 percent on February 2 Ñ its highest level in more than four years. But the move has failed to dent confidence in the US economy, with the dollar still on the rise.

Meanwhile, the Indonesian rupiah made a slight comeback as rumours of a military coup amid the country's political turmoil eased.

JAPANESE YEN: The yen rebounded from a five-month low as investors adjusted their positions toward a three-day weekend after selling the Japanese unit on the gap of interest rates in Japan and the United States, dealers said.

The yen stood at 108.50-53 to the dollar late Thursday, still down from 107.42-45 to the dollar late Friday in the previous week. There was no trading here on Friday for a public holiday.

Sanwa Bank dealer Mitsuru Sahara said traders had also built up long-dollar positions expecting the US unit to rise above 110 yen. "So there was a move to correct positions ahead of the long weekend," he said.

There was no clear direction in the market as many investors were still seen likely to buy dollars, given the gap between the interest rates, dealers said. The yen lost ground from the start of the week as the dollar's gains against the euro were expected to boost its strength against the Japanese unit. Expectations of a decline in Japan's quarterly gross domestic product also pressured the yen, dealers said.

AUSTRALIAN DOLLAR: The Australian dollar currently has a negative leaning but the potential to spike sharply higher, brokers said.

"The Aussie is seemingly oblivious to events such as higher interest rates, gains in commodity prices and a volatile but stronger gold price," said Colonial State Bank senior economist Craig James.

The Australian dollar ended the week at 62.89 US cents from 63.14 cents previously.

On the Reserve Bank's Trade Weighted Index the Australian dollar ended on Friday at 55.3 from 55.6 the previous week.

NEW ZEALAND DOLLAR: The New Zealand dollar closed on Friday at 49.11 US cents, down from the 49.46 cents a week earlier.

"Overnight there was some more selling, with more gold rumours out there, but that came to nothing," a currency dealer said.

HONG KONG DOLLAR: The Hong Kong dollar stood at 7.7811-7.7821 on Friday from 7.7802-7.7812 the previous week.

TAIWANESE DOLLAR: The Taiwan dollar gained momentum over the past week finishing at 30.625 against the US dollar on Friday, up from 30.788 the week before, due to continued inflow of foreign capital for investment in the Taiwan stock market, dealers said.

SINGAPORE DOLLAR: The Singapore dollar ended the week lower at 1.6940 against the US dollar from 1.6863 the previous week.

PHILIPPINE PESO: The Philippine currency closed on Friday at 40.440 pesos to the dollar, from 40.520 pesos last February 4.

SOUTH KOREAN WON: The won strengthened from 1,129.70 against the dollar a week ago to 1,115 won to the greenback on Friday as the government showed signs of relenting in its efforts to check its rapid appreciation amid massive inflows of foreign funds into the country's stock market.

INDONESIAN RUPIAH: The Indonesian rupiah strengthened to 7,325 to the dollar at close of trade on Friday from 7,555 a week earlier as coup rumours subsided.

THAI BAHT: The Thai baht fell back early in the week in line with regional currencies, but as local investors and foreign investors sold dollars the baht rose in trading late in the week.

The baht closed on Friday at 37.40-55 baht to one dollar, almost unchanged from last week's close of 37.45-55.ÑAFP