Asian currencies had a mixed week against the dollar on expectations of a US Federal interest rate hike and rising commodity prices.
The yen stood at 120.48 to the dollar in Friday afternoon, down from 119.15 to the dollar seen a week ago.
"As the market is now focusing on interest rate differentials, the Japanese yen will be in the most inferior position in the foreign exchange market," said Makoto Kojima, managing director at UBS Tokyo.
"The issue of interest rates underpinned the dollar," Resona Bank dealer Shinji Kobayashi said, adding that Japanese importers were also buying dollars.
Expectations of further rises in US interest rates were cemented by a better-than-expected survey of the US factory sector and other positive recent indicators, said Kikuko Takeda, currency analyst at Bank of Tokyo-Mitsubishi.
"The dollar's strong trend will remain in the mid to long-term though it will face profit-taking (in the short-term)," said Takeda, who expects the US currency to reach around 122 yen this year.
The Australian dollar was trading at 74.26 US cents Friday, up on the previous week's 73.60 US cents.
RBC Capital Markets currency strategist Greg Gibbs said near-record commodity prices were driving up the Australian dollar against the greenback, even though the US currency was itself posting gains.
Attention this week will be focused on the Reserve Bank's monetary policy meeting, the results of which will be announced Wednesday.
BNZ currency strategist Sue Trinh said the strength of the New Zealand dollar continued to be affected by "an insatiable appetite for yield" at a time when global interest rates were relatively low.
This country had the highest interest rates in the developed world, she said. New Zealand's official interest rate is at 7.00 percent and the central bank is expected to lift rates again due to inflationary pressures when it meets on Thursday.
That compared with a closing price of 8.0798 on the previous trading day.
Dealers said the won was expected to move within a limited range of between 1,035 won and 1,041 won, largely depending on the movement by the US currency in global markets.
The Thai unit closed Friday at 41.43-45 baht to one dollar compared to last week's close of 41.20-22.