The dollar recouped losses against Asian currencies after an upbeat US manufacturing report and a drop in oil prices.
The yen changed hands at 115.90 to the dollar on Friday, down from 115.45 a week earlier.
The Japanese unit gained ground against the dollar earlier this week after a series of tame economic indicators which suggested a slowdown in the US economy.
But the yen fell back on Friday after a better-than-expected US manufacturing report and a drop in oil prices sent the dollar up, dealers said.
"The market now lacks strong and convincing leads to move the dollar-yen in either direction, so participants react to any single US data," Mitsubishi UFJ Securities forex dealer Minoru Shioiri said.
The Federal Reserve last week suspended two years of back-to-back monthly interest rate rises.
But "there are still interest rate differentials between Japan and the US even though US interest rate hikes are said to be at a peak while the pace of Japan's rate hikes is slow," he said.
The Bank of Japan is expected to lift rates, either later this year or in 2007, after ending its unorthodox five-year policy of zero-interest rates.
The Australian dollar was trading at 76.06 US cents late Friday, down from the previous week's 76.80 US cents.
Westpac economist Jonathan Cavenagh said Macfarlane's comment to a parliamentary committee Friday would underpin the Australian currency.
He said Macfarlane's statement meant there would probably be more policy tightening after two rate hikes in May and August took the official base rate to a six-year high of 6.0 percent.
"If you read between the lines all the risks are towards the upside," Cavenagh said.
"We think they will raise rates again, and that will provide some near-term strength for the currency."
An interest rate rise would increase Australia's interest rate differential with the United States, making the Australian currency more attractive to international investors.
The kiwi should stay around present levels as it had failed to break through 64.50 US cents in recent months, said ANZ Bank technical analyst Mark Elliott.
The ASB Bank said there could be further near-term gains as a short market has been surprised by the generally resilient local economic data.
The yuan traded between 7.9780-7.9720 on Friday, according to a dealer with a domestic bank.
Friday's central parity rate for the yuan was set at 7.9736 to the dollar.
The People's Bank of China has a daily yuan-dollar trading band of 0.3 percent on either side of the midpoint.
The dollar is expected to move between 955 and 964 won in the coming week, dealers said.
The Thai unit closed Friday at 37.50-57 baht to the greenback, compared to 37.33-40 a week earlier.