Kina strong against most currencies

Business, Normal

THE kina was relatively strong last week against a basket of currencies, except the yen where it experienced some declines.
Markets are now waiting on US gross domestic product (GDP) fourth quarter data which is due for release shortly.
In a weekly update, the ANZ Bank said a strong US GDP data should provide some support to the greenback.
Against the Australian dollar, the kina appreciated by about 1.8% as investors cut risk trades funded by the yen and US dollar.
The Aussie underperformed as uncertainties about China’s efforts to restrain bank lending and Ben Bernanke’s re-appointment as US Federal Reserve chairman for a second term weighed on investors’ sentiment.
The bank said the kina was relatively firm on US dollar inflows which assist import demand.
On the currency front, speculations on higher interest rates in US and general investor interest apathy towards high-yielding currencies gave some boost to the greenback last Thursday.
The greenback was also assisted by the news that US Fed and other major central banks would conclude emergency dollar lending operations yesterday.