Asian currencies firmed against the dollar over the past week, led by the yen, but dealers were watching for the outcome of next week's Opec meeting and the release of US unemployment figures.
JAPANESE YEN: The yen bounced back against the dollar from a weak start to the past week amid concerns about the negative impact of high energy costs on the global economy and fears of terror attacks on US targets.
The Japanese currency stood at 110.42-45 to the dollar late Friday, up from 111.96-98 to the dollar a week earlier and after coming back from a low of 113.33 to the dollar on Tuesday.
"People bought US dollars recently due to the rate hike expectations but the real money is not there partly because there are a lot of geopolitical risks," RBS Securities Japan foreign exchange manager Kosuku Hanao said Friday.
Dealers said market players were expected to sit on the sidelines before a meeting of the Organisation of Petroleum-Exporting Countries (OPEC) in Beirut on Thursday next week and the release of US jobless data on Friday.
An Opec agreement to boost its oil output quota could prompt dollar buying as "high oil prices are seen by many participants as an immediate weak-dollar factor," the leading economic journal, Nihon Keizai Shimbun, said on its Internet edition.
If the improvement in US employment slows, it may reduce prospects for US rate hikes, dampening enthusiasm for dollar purchases, the journal said.
"Technically, the US unit faces a downside trend toward the 109 yen level but I expect the dollar to hold above that level and could eventually start rising," said Bank of Tokyo-Mitsubishi market analyst Masashi Hashimoto.
AUSTRALIAN DOLLAR: The Australian dollar is expected to continue to climb next week, buoyed by a weaker US dollar and firmer commodity prices, dealers said.
After rallying from seven-month lows against the greenback earlier this month, the Australian dollar finished the week on 71.77 US cents, up from last week's 70.20 US cents.
Commonwealth bank currency strategist Alex Schuman said the local dollar was comfortably consolidating as it approached 72 US cents.
"We have tested closer to 72 cents a couple of times; it briefly broke through once before retreating," Schuman said. "Overall, the Australian dollar is digesting these higher levels."
Schuman said the currency was set to rise against the greenback in the short term.
"The path of least resistance is for the Aussie to rise," he said. Dealers did not expect the central Reserve Bank to lift interest rates at its monthly board meeting next week.
NEW ZEALAND DOLLAR: New Zealand's dollar closed Friday worth 63.35 US cents, up on the 60.78 cents of a week earlier.
The New Zealand currency was expected to be particularly volatile for the next month or two until the US Federal Reserve began to lift interest rates, dealers said.
HONG KONG DOLLAR: Hong Kong's US-pegged dollar was at 7.7936 on Friday from 7.7893 the previous week.
INDONESIAN RUPIAH: The rupiah ended the week weaker at 9,290/9,300 to the dollar compared with 9,070/9,080 the previous week.
SINGAPORE DOLLAR: The US dollar was at 1.6993 Singapore dollars on Friday from 1.7165 the previous week.
SOUTH KOREAN WON: The won further strengthened to 1,164.90 won Friday from 1,175.30 won to the greenback a week earlier, reflecting the US currency's loss of ground against the yen following weaker-than-expected US economic data.
A dealer with KorAm Bank said the dollar-won exchange rate would find support at the level of 1,160 won per dollar given that the dollar was being traded around 110 yen per dollar.
THAI BAHT: The baht gained slightly against the greenback in the past week in narrow trade ahead of the Opec oil producer's ministerial meeting next week, dealers said.
The baht closed Friday at 40.61-63 to the dollar compared to last week's close of 40.70-73.
TAIWAN DOLLAR: Taiwan's dollar rose 0.3 percent over the week to close at 33.449 against the greenback Friday on the back of a weaker US dollar. The currency finished at 33.549 the Friday before.
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