The yen gained ground against the dollar during the week, backed by a strong Japanese stock market, while the Aussie fell to one-month lows as the greenback strengthened.
JAPANESE YEN: The yen stood at 110.49 to the dollar in Tokyo Friday afternoon, compared with 111.76 to the dollar a week earlier.
"While US stock markets are on a bearish trend, the focus is on the bullish trend of Japanese stock markets," said Kikuko Takeeda, currency analyst at Bank of Tokyo-Mitsubishi.
Japanese share prices hit a new four-year high Tuesday on participation of foreign investors buoyed by strong assessments of the Japanese economy by the central bank and the government.
For the week to August 19, the Tokyo Stock Exchange's benchmark Nikkei-225 index edged up 30.05 points or 0.25 percent to finish at 12,291.73. "The yen will likely rise step by step on growing expectations that the economy is emerging from its soft patch," said Osamu Takashima, chief currency strategist at Bank of Tokyo-Mitsubishi.
But Takashima said he did not expect the yen to breach the 109 level to the dollar any time soon given a lack of fresh leads to push the Japanese unit decisively higher.
Dollar-buying sentiment based on the strong US economy also discouraged investors from continuing buying the Japanese yen, dealers said.
Investors are closely watching results of the September 11 general elections, dealers said. Prime Minister Junichiro Koizumi said he would step down from his premiership if his ruling coalition fails to win a majority in the snap poll.
AUSTRALIAN DOLLAR: The Aussie fell to one-month lows on Friday as the US dollar gained strength, and indications were that local interest rates would remain on hold and commodity prices soften.
At close on Friday the dollar was trading at 75.19, more than two US cents below the 77.41 US cents close of the previous week. The dollar traded as low as 75.09 US cents on Friday, a level not visited since July 20.
National Australia Bank strategists said the Australian dollar dropped on Friday due to demand for the US dollar, softer metals prices and poorer investor risk appetite.
The Aussie's support at 74.80/85 US cents would be tested while solid resistance would be felt at 76.00/05 US cents, they said.
CommSec's Craig James said the Australian dollar was still within the familiar range of 75-78 US cents with the focus on commodity prices.
NEW ZEALAND DOLLAR: The New Zealand currency ended the week at 69.69 US cents down from 70.42 US cents the previous week and topping 71 cents on Monday.
CHINA YUAN: The yuan closed at 8.1047 to the US dollar on Friday, against 8.0980 the previous week.
HONG KONG DOLLAR: The Hong Kong dollar closed the week at 7.7715, little changed from a week earlier.
INDONESIAN RUPIAH: The rupiah closed lower Friday at 9,985/9,995 to the dollar compared to the previous week's close of 9,800/9,810, amid rising dollar demand to pay for oil imports, dealers said.
PHILIPPINE PESO: The Philippines peso traded lower at 56.045 to the dollar on Friday afternoon, compared to 55.645 on August 12.
SINGAPORE DOLLAR: The greenback was at 1.6678 Singapore dollars on Friday from 1.6447 the previous week.
SOUTH KOREAN WON: The won closed at 1,025.70 won per dollar Friday, compared with 1,013.80 won a week earlier.
The dollar gained 7.0 won on Friday alone as foreign investors were net-selling South Korean stocks and overseas players were selling the won for the greenback amid expectations that US interest rates will continue rising.
Dealers said the movement of the won would depend on whether foreigners remain net-sellers in the stock market.
The won is likely to move within a range of 1,023 won and 1,030 won in the coming week.
TAIWAN DOLLAR: The Taiwan unit declined 0.93 percent over the week to end at 32.189 against the greenback Friday. It finished at 31.892 a week ago.
THAI BAHT: The baht depreciated against the US dollar in the past week due to high oil prices and profit taking in the Thai stock market, dealers said, adding the dollar was likely to strengthen on good US economic data.
The Thai unit closed Friday at 41.26-28 baht to one dollar, against last week's close of 40.92-95.
But the Thai unit gained slightly against the euro to close at 50.22-35 to one euro compared to 50.80-86.
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