Asian currencies weakened on Friday after the yen slipped on suspected Japanese intervention, although some support was seen from strong equity markets and expectations of foreign portfolio investment.
The dollar climbed almost two yen to a high around 108.30 yen as traders reported massive Japanese intervention, but the currency later pared part of those gains to trade around 107 yen.
The Singapore dollar fell to around 1.6965/75 per dollar, almost half a cent back from highs near 1.6935, an April 2000 peak it matched this week.
The Korean won was forced off a two-month high near 1,181 per dollar, first by a finance ministry statement and then the yen's fall, but it soon reclaimed those peaks.
The Taiwan dollar too mimicked the yen's fall and then retraced its losses.
Stock markets across Asia rose, with Seoul's KOSPI hitting a 19-month peak, and data showed foreign investment inflows into Korean and Taiwan equity markets continued.
"However you are trading dollar/yen on a day in which equity markets are quite strong, equity inflows are probably strong, there is demand for local currencies and the flows that are driving the currencies are probably slightly more fundamental than some of the speculative flows that are driving dollar/yen."
The Thai baht was listless around 39 per dollar, having come off Wednesday's highs around 38.93.
The Indonesian rupiah and the Philippine peso were weaker by the end of Asian trading.
Since early December, the euro has risen about six percent against the dollar and, at Friday's levels the yen has risen about 2.8 percent.
That compares with a 1.7 percent rally in the Sing dollar, a two percent rise in the won and a 1.5 percent in the Taiwan dollar.
Analysts said the under-performance of many Asian currencies against the euro and the yen would probably be a continuing feature in the early part of 2004.
"We continue to hold the view that Asia is going to do well over calendar year 2004 but, in the first quarter and maybe even second quarter, we are very nervous about holding long won, long Thai baht and long Taiwanese dollar positions," said Michael Jansen, a currency strategist with National Australia bank in Sydney.
"There is obviously strong potential for significant rallies across the Asian currency complex but, at this point in time, monetary authorities continue to fight more aggressively.
The continuing under-performance expected across Asia called for a medium-term long yen position against some of the regionals such as the won, he added.
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