Oil prices rose in Asian trade on Friday amid optimism over U.S. interest rate cuts and improved summer demand, but were still set for weekly losses on some profit-taking.

The yen was volatile on Friday after a sharp surge in the previous session in the wake of U.S. consumer prices unexpectedly dropping in June, stoking speculation that Tokyo had intervened to lift the currency away from 38-year lows.

Asian stocks rose on Thursday as technology stocks rallied after positive revenue figures from chipmaking giant TSMC sparked more optimism over artificial intelligence, with Japanese stocks crossing new peaks. 

Oil prices gained on Thursday as crude stocks fell after U.S. refineries ramped up processing and as gasoline inventories eased, signalling stronger demand.

Sterling strengthened to a four-month high on Thursday after comments from Bank of England policymakers prompted markets to scale back bets of an August rate cut, while the dollar inched lower ahead of a U.S. inflation report later in the day.

Most Asian stocks kept to a tight range on Wednesday as markets digested mixed inflation prints from China and Japan, while focus remained on when the Federal Reserve could begin trimming interest rates.