Asian currencies were a touch firmer on Friday as this week's strong rise in the dollar came to a halt ahead of US economic numbers later in the session.
Dealers said a slight rebound in the yen from a two-year low against the dollar on Thursday supported regional currencies, although trading was largely range-bound before a raft of US numbers, including inflation data.
The South Korean won firmed about 0.4 percent to 1,043.6 per dollar, pushing away from Thursday's three-month low of about 1,049.
The Singapore dollar and Thai baht were up about a fifth of a percent each, while the Taiwan dollar pulled away Thursday's 11-month low of 33.49 per dollar.
The Indian rupee was a third of a percent firmer at about 44.82 per dollar, recovering slightly from this week's 10-1/2 month lows.
"There is some profit taking in dollar/Asian currencies," said Craig Chan, a currency analyst at Royal Bank of Scotland in Hong Kong.
"If the US CPI data comes in stronger than expected, this will continue to impact on growth and equity markets in Asia and will be negative for some Asian currencies as well."
In recent weeks, the Federal Reserve has sent clear signals that it would keep tightening monetary policy to ward off inflation. Against this backdrop, the dollar has risen against both major and Asian currencies.
Federal Reserve Bank of Kansas City President Thomas Hoenig said on Thursday that rising inflation had placed the Fed on alert and it would take the necessary steps to ensure price stability.
"Everyone is holding long dollar positions and everyone is waiting to see if the dollar tests higher," said one Singapore-based dealer.
There was a note of caution before a weekend meeting of finance ministers and central bank governors from 20 wealthy and developing nations in China, but analysts said this was unlikely to have a significant impact on Asian currency markets.
China is under pressure from the United States to build on its 2.1 percent revaluation of the yuan in July by letting the currency rise further to reflect the country's bulging balance of payments surplus.
But China's Finance Minister Jin Renqing reiterated on Friday that the aim of government policy was to keep the yuan basically stable at a balanced and rational level.
"There is nothing new in today's China comments," said Royal Bank of Scotland's Chan. "They just give the market an idea of what to expect at the G20 meeting."
The Philippine peso showed little reaction to news on Friday that money sent home by Filipinos working overseas rose 28.3 percent in August from a year earlier.
Analysts said, however, that expectations of strong remittances in the final quarter of the year was positive for the peso.
One trader in Manila said that, even if there was strong demand in Asia for dollars, "the market is wary that the central bank will intervene if dollar/peso gets to the 55.90 area".
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