Asian currencies slid after the greenback strengthened last week on the release of strong economic data that suggested a hike in the historically low US interest rate was in the offing.
Expectations of a hike were however offset after the close of Asian markets late on Friday by the release of reports showing a surprise decline in US consumer confidence and an unexpected drop in industrial production last month.
JAPANESE YEN: The yen dipped against the dollar as the greenback was lifted by the prospect of a US interest rate hike, dealers said.
The Japanese unit stood at 108.37-39 to the dollar late Friday, down from 106.40-43 to the dollar a week earlier. It hit a one-month low of 109.28 on Thursday on plunges in Japanese stocks and prospects of higher US rates.
Himawari Securities currency strategist Soichiro Mori attributed the yen's setback to a rush by speculators to "wind up their yen-long positions on expectations for a US rate increase."
Speculation was rife about the timing of possible US interest rate hikes as employment figures, retail sales and consumer prices gave positive prospects for the US economy.
The market will follow congressional testimonies to be made by US Federal Reserve chairman Alan Greenspan on Tuesday and Wednesday.
Prospects for a sustained Japanese economic recovery had however supported the yen and limited gains in the dollar, Bank of Tokyo Mitsubishi dealer Tetsuya Imai said.
AUSTRALIAN DOLLAR: The Australian dollar is expected to weaken next week amid fears a US interest rate rise would narrow Australia's rate advantage over the rest of the industrialised world, dealers said.
The currency ended the week at 74.26 US cents, more than two US cents down on last week's 76.6 US cents, as strong US economic data pushed up the greenback and increased speculation the US Federal Reserve would tighten monetary policy.
While the Australian currency recovered some ground against its US counterpart late in the week, dealers said uncertainty over interest rates pointed to weakness in the short term.
"The market is still nervous about further downside on the aussie dollar," Macquarie Bank divisional director Geoff Bowmer said.
Comments during the week by Reserve Bank of Australia governor Ian Macfarlane that interest rates around the world should soon start rising off the back of a stronger US economy added to the jitters.
Australia's official cash rate is 5.25 percent, compared to 1.0 percent in the United States, providing a powerful incentive to buy the Australian currency.
Bowner said if the gap narrowed, it would drive the aussie down.
However there is still optimism about the long-term strength of the currency, with investment bank J.P. Morgan predicting it would reach 81 US cents by the end of the year, down slightly on its previous forecast of 82 US cents.
NEW ZEALAND DOLLAR: New Zealand's dollar closed Friday worth 63.98 US cents, sharply down on the 66.14 cents of a week earlier, currency dealers said.
Volatile movements in several countries late in the week had an impact, BNZ currency strategist Sue Trinh said.
"The Great British pound led the way, but that sold off and it dragged the euro, the aussie and then the kiwi with it," Trinh said.
SINGAPORE DOLLAR: The US dollar was at 1.6815 Singapore dollars on Friday from 1.6754 on Thursday the previous week. Markets were closed on April 9, a religious holiday.
HONG KONG DOLLAR: Hong Kong's US-pegged dollar was at 7.7983 on Friday from 7.7961 the previous week.
INDONESIAN RUPIAH: The Indonesian rupiah closed the week slightly weaker at 8,617-8,623 to the dollar compared with the previous week's close of 8,582-8,587. PHILIPPINE PESO: The Philippines peso rose to 55.80 to the dollar in late trading Friday, compared to 56.295 on April 6, the last trading day before the Easter break.
SOUTH KOREAN WON: The won had weakened to 1,160.10 won per dollar Friday from 1,143.90 won a week earlier, reflecting the global strength of the greenback.
TAIWAN DOLLAR: The Taiwan dollar eased 0.1 percent over the week to close at 32.975 against the greenback Friday on the back of a slightly weaker Japanese yen. The currency finished at 32.940 last Friday.
THAI BAHT: The baht fell against the US dollar over the shortened trading week, during which Thailand celebrated a three-day public holiday, due to positive economic data which supported the greenback, dealers said.
The baht closed Friday at 39.42-44 to the dollar compared to last week's close of 39.19-21.
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