SINGAPORE -- Asian currencies were steady to moderately stronger against a broadly weaker US dollar on Friday, led by the Singapore dollar and Chinese yuan.
The Singapore dollar rose as far as 1.4026 per US dollar, up almost 0.7 percent from late Asian trade on Thursday to its strongest level since August 13.
"The Singapore dollar is following general dollar movement," said a trader in Singapore.
"Some longs from yesterday from above 1.4100 cut all the way down in New York market to 1.4026 and local banks tried to push up to sell (US) dollars this morning," the trader added.
The Malaysian ringgit eased back to 3.3390 per dollar, virtually flat from late Asian trade on Thursday, after briefing rising to 3.3260.
"The dollar has not fallen as much against the ringgit despite its drop against majors," said a trader in Kuala Lumpur.
Analysts polled by Reuters expected Malaysia's July inflation, due to be released later in the day, to hit a 27? high due to higher fuel and electricity costs, but they see only a small chance of an interest rate rise next week.
The dollar index, a gauge of its performance against a basket of six major currencies, edged up to 76.22 after falling 1.2 percent on Thursday -- the biggest one-day drop since March when the index slumped to an all-time low.
A surge in commodity prices and worries about the US financial sector are taking the wind out of the dollar's recent rally which was fuelled by unwinding of positions in the euro, gold and oil.
Investors awaited comments from Fed Chairman Ben Bernanke, who will speak on financial stability later in the day.
Elsewhere, the Taiwan dollar briefly hit 31.308 per US dollar, up a quarter of a percent from Thursday's close.
The Chinese yuan gained a quarter of a percent to a fresh three-week high at 6.8271 per dollar after the central bank the daily mid-point rate sharply higher.
The yuan's rise has stalled in recent weeks, but many analysts expect the pace of its appreciation to pick up steadily as the country still needs a strong currency to rein in inflation.
