Most emerging Asian currencies edged higher on Friday, tracking the Chinese yuan, but a strong dollar ahead of U.S. growth data capped the upside.
The yuan recovered from a more than two-month low hit in the previous session, rising as much as 0.4 percent against the dollar, after President Xi Jinping's pledge to keep the currency stable.
China will not resort to currency depreciation and will "continue to improve exchange rate formation mechanism" to keep the currency "basically stable at reasonable and balanced levels", Xi said at a summit on the Belt and Road initiative.
Dominic Schnider, head of commodities and APAC Forex, UBS Wealth Management, said a stable yuan had positive ramifications for Asian currencies.
Asian currencies have largely been under pressure this week due to broad dollar strength on the back of upbeat U.S. economic data.
The dollar index versus a basket of six key rivals stood at 98.123 after advancing to 98.322 on Thursday, its highest since May 2017.
The currency market's focus is now on the U.S. GDP data, which could reinforce bullishness about the world's top economy after a slew of numbers this week pointed at an improved outlook.
A Reuters poll has forecast that the U.S. economy will record a 2 percent growth in the first quarter, slightly slower than the 2.2 percent posted in the previous quarter.
Developments in trade talks between the world's top two economies will also be closely watched after U.S. President Donald Trump said on Thursday he would soon host Chinese leader Xi Jinping at the White House, setting the stage for a possible agreement.
The Thai baht and the Indian rupee both strengthened 0.2 percent.
While a slight dip in oil prices after continued gains provided some respite to the rupee, a consistent rise in the dollar index remains a matter of concern, said Rushabh Maru, a currency and commodity analyst with Anand Rathi Shares and Stock Brokers.
Indonesia's rupiah depreciated slightly against the dollar and was poised to record a weekly loss of 1 percent.
Bank Indonesia kept its benchmark interest rate unchanged for a fifth month on Thursday to contain external pressures, though it is aiming for looser market liquidity and relaxed rules on trading in domestic non-deliverable forwards.
Gains in the Singapore dollar were limited after data showed industrial production in March fell from a year earlier as expected, due to a plunge in electronics output.
The South Korean won weakened for a fifth straight session and was headed for a weekly loss of 2.2 percent, hurt primarily by lingering concerns over the state of economy.
Asia's fourth-largest unexpectedly shrank in the first quarter, marking its worst performance since the global financial crisis, as companies slashed investment and exports slumped.
The Taiwan dollar edged lower against the dollar.
Taiwan's economy is expected to slow in the first quarter as technology manufacturers were hit by weak global demand and persisting concerns over the Sino-U.S. trade war, a Reuters poll showed.
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