Currencies 12/24/2006

Currencies
Dollar Climbs to Eight-Week High Against Yen as Spending Measure Increases The dollar climbed to an eight-week high against the yen after reports showed U.S. personal spending increased and consumer confidence was stronger than forecast.
Baht Posts Biggest Weekly Loss Since 2002 After Currency Restrictions Set The Thai baht this week slumped the most since July 2002 as investors withdrew funds because of central bank rules aimed at weakening the currency.
Americas
Colombia to Cut Estimated Foreign Borrowings to 6.9 Trillion Pesos in 2007 Colombia will trim its estimated foreign borrowings to 6.9 trillion pesos ($3.1 billion) next year, Finance Minister Alberto Carrasquilla said.
Venezuela Bolivar Advances the Most in Almost Two Weeks in Street Trading Venezuela's bolivar rose the most in almost two weeks in street trading on speculation companies and buyers had stocked up sufficiently on dollars before year-end.
Canada's Dollar Trades Near an Eight-Month Low on Slowing Economic Growth The Canadian dollar was little changed this week, trading near an eight-month low, after government reports suggested economic growth is slowing.
Europe
Euro Posts Weekly Gain as Traders Lift Bets That ECB Will Increase Rates The euro gained this week against the dollar and yen as a surge in German business confidence led traders to increase bets the European Central Bank will lift interest rates further.
U.K. Pound Drops Versus Euro on Expectations Interest Rate Gap Will Narrow The pound posted a weekly drop against the euro on speculation its interest-rate advantage over the euro region will narrow next year as the European Central Bank raises rates by more than the Bank of England.
South African Rand Advances for 5th Consecutive Week on Outlook for Rates South Africa's rand advanced for a fifth week amid speculation the yield premium of holding local assets will continue to widen as the central bank raises interest rates next year.
Asia
South Korean Won Has Biggest Weekly Loss in Two Months, Thai Baht Tumbles South Korea's won had the biggest weekly drop in more than two months on concern the central bank will sell the currency to maintain export competitiveness.
Malaysia Is Not Concerned About Strengthening Ringgit, Nor Yakcop Says Malaysia's government said it's not concerned about the strength of the ringgit after the currency climbed to the strongest since its seven-year dollar peg was ended in 2005.
N.Z. Dollar Surpasses 70 to Year's High as Bets on a Rate Increase Jump New Zealand's dollar passed 70 U.S. cents to the highest this year on speculation the central bank will increase record-high interest rates as early as January.