Asian currencies fall against dollar

Asian currencies ended the week down against the dollar, with the yen sinking sharply amid fears for the world’s second-biggest economy following a slew of bad data.
The yen tumbled to six-week lows against the dollar as Japanese Finance Minister Shoichi Nakagawa’s resignation added to worries over the nation’s prospects for economic recovery.
The Japanese currency stood at 94.09 against the dollar late Friday, down from 91.19 a week earlier.
Fears over Asia’s biggest economy have deepened following a raft of dismal data, including figures released on Monday showing that the economy contracted at an annualised pace of 12.7 percent in the fourth quarter of 2008.
The yen dipped when Nakagawa resigned on Tuesday following claims that he was drunk at a Group of Seven meeting in Rome.
There was also slow progress in a parliamentary budget debate as the opposition controls the upper house.
A weaker yen could benefit Japanese exporters such as electrical and automobiles.
But Ryohei Muramatsu, a treasury manager for Asia at Commerzbank, warned: “The government’s lack of ability to manage risks was exposed to the world. It led to the yen’s weakness, which is not helpful for the Japanese economy.”

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Source:Agence France-Presse . Hong Kong