Major Asian currencies fell against the dollar last week, with the yen weak due to low interest rates in Japan, as traders look ahead to this weeks rate decision by the US Federal Reserve.

Japanese Yen: The yen remained weak against the dollar as investors shunned the Japanese currency due to its superlow interest rates, with the possibility of a hike next month dampened by soft inflation figures. Japan announced that core consumer prices rose by 0.1 per cent in December from a year earlier, below market forecasts of 0.2 per cent.

Australian Dollar: The Australian dollar will likely hold above the 77 US cent level next week, but its chances of breaking through the 80 US cent ceiling are fading fast in the wake of weak inflation data. AMP chief economist Shane Oliver agreed the recent good news on inflation was bad news for the local currency in that the interest differential in Australias favour would not widen. Similarly, commodity prices, which remained high despite softening since May, provided a mixed message for the Aussie dollar. The prospects of the Australian dollar bursting through the 80 US cent level are fading as rapidly as an ice cream on a hot summer day.

New Zealand Dollar: The New Zealand dollar ended the week at 69.69 US cents.

Chinese Yuan: The yuan closed at 7.7755 to the dollar on January26. The Peoples Bank of China allows a trading band of 0.3 per cent on either side of the midpoint.

Hong Kong Dollar: The Hong Kong dollar ended the week at 7.8094, compared to 7.8069 a week earlier.

Indonesian Rupiah: The rupiah ended the week trading at 9,117/9,122 to the dollar, compared to 9,075/9,080 to the dollar.

Philippine Peso: The Philippine peso slid to 49.090 to the dollar on January, 26 from 48.895 on January 19.

Singapore Dollar: The dollar was at 1.5386 Singapore dollars from 1.5360 the previous week.

South Korean Won: The won weakened from 936.30 won per dollar.

Taiwan Dollar: The Taiwan dollar fell 0.39 per cent during the week to close on January, 26.

Thai Baht: The baht hit a high of 35.75 against the dollar on January,25. The Thai unit closed on January, 26 at 35.8587 baht to the dollar compared to last weeks close of 36.0204 baht.