Most Asian emerging currencies rose on Friday and were set to post monthly gains, but are expected to come under fresh downward pressure in coming months after the US Federal Reserve put a December rate hike firmly on its agenda.
China's yuan gained after the ruling Communist Party reaffirmed plans for "medium to high" economic growth in its next five-year plan and on strength in the offshore yuan market.
The Taiwan dollar strengthened from Thursday's close, which traders said the central bank weakened through its usual last-minute intervention.
Foreign financial institutions and local insurers, however, sold the island's currency as the economy contracted in the third quarter for the first time since the global financial crisis.
South Korea's won advanced as data showed industrial output growth in September hit a three-month high, lending strength to its recovery.
The US dollar broadly eased after data showed the world's largest economy grew at a 1.5 percent annual rate in the third quarter, just shy of the consensus forecast of 1.6 percent growth and slowing from a 3.9 percent expansion in the second quarter.
The greenback briefly came under further pressure after the Bank of Japan held off on expanding its stimulus programme on Friday, though such a decision had been widely expected.
Still, the dollar found support as solid consumer spending kept alive the possibility of a Fed rate increase before year-end. The US central bank on Wednesday already left the door open to tightening monetary policy at its next meeting in December.
"Asia FX will weaken in November because USD will strengthen as markets price in the risk of a Fed hike in December," said Sean Yokota, head of Asia strategy for Scandinavian bank SEB in Singapore.
Recent disappointing US economic data had caused investors to scale back bets that the Fed may raise borrowing costs before the year-end. That helped put most emerging Asian currencies on track for monthly gains in October.
Indonesia's rupiah led gains among regional units with a 7.2 percent jump against the dollar this month. That would be its largest monthly appreciation since April 2009, according to Thomson Reuters data.
Investors had sought higher yields in Indonesia on hopes that the Fed may not increase interest rates soon. The European Central Bank also signalled new stimulus measures what could be unveiled as soon as December.
The South Korean won rose 4.1 percent in October on some signs of an economic recovery, which would be the biggest monthly gain in four years. The Bank of Korea earlier this month left its key interest rate at a record low, offering a cautiously optimistic view of Asia's fourth-largest economy.
Malaysia's ringgit has advanced 2.3 percent as investors pared some bearish bets on the worst performing Asian currency so far this year.
The Thai baht has appreciated 2.0 percent so far this month on stocks and bond inflows.
Singapore's dollar has gained 1.5 percent as its latest monetary policy easing was seen less aggressive than some expectations. The Taiwan dollar has risen 1.8 percent, while the Indian rupee has strengthened 0.5 percent.
The yuan was up 0.3 percent. Still, investors doubted over if emerging Asian currencies could extend gains into the next month.
Pessimism has already grown toward regional units in the last two weeks, with views on the yuan turning bearish, a Reuters poll showed on Thursday.
"A slew of announced and expected central bank easing has given some stability to EM assets, but it may prove to be a poisoned chalice," Barclays said in a note, referring to emerging markets.
"The more constructive global policy backdrop and reduced market volatility may have prompted the Fed to sound more hawkish - reinforcing USD strength and EM FX pressures."
The Philippine peso bucked monthly regional appreciation, with a 0.3 percent loss as foreign investors continued to sell local stocks.
That would be its sixth consecutive monthly slide, Thomson Reuters data showed.
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