Most Asian currencies strengthened on Friday as positive economic readings from the U.S. and China helped soothe concerns over a recession, although improved risk appetite put renewed pressure on the Japanese yen.
Asian stocks rose on Friday amid cooling fears that a U.S. recession was imminent, while mildly positive inflation data from China also helped spruce up sentiment.
Asian shares are ending a rough week on a high as Japanese stocks are close to recouping all of the huge losses from Monday, while the yen slipped again as markets pared back the chance of an outsized U.S. rate cut.
Oil prices were flat in Asian trade on Friday, but were set for their first positive week in five as a mix of bargain buying, improving sentiment towards the U.S. economy and persistent geopolitical tensions boosted prices.
The yen crumbled on Wednesday after a Bank of Japan official played down the chances of a near-term rate hike in a fresh twist to the week that started with massive moves driven by U.S. recession fears and unwinding of popular carry trades.
Most Asian currencies drifted lower on Wednesday as the dollar regained more ground from recent declines, while the yen fell sharply after Bank of Japan officials downplayed expectations of interest rate hikes.