Tokyo - The dollar rebounded in Asia Friday ahead of a US Federal Reserve policy meeting next week, while buying sentiment was also boosted by diplomatic efforts to avert a US military strike in Syria.
The greenback fetched 99.80 yen in Tokyo afternoon trade, up from 99.47 yen in New York, but still below the 100-yen mark seen on Wednesday.
The euro bought 132.51 yen from 132.33 yen and $1.3276 against $1.3298 following a weak report on European industrial production.
The Fed will next week hold a two-day policy meeting to decide on the next move for its $85 billion-a-month bond-buying scheme.
Most analysts expect it to begin winding down this month as the US economy strengthens, although last week's below-forecast jobs figures suggest it will only reduce its bond purchases by a small amount.
US retail sales will be released later Friday and a strong result could further bolster the case for immediate action.
Pushing up the dollar was a report that US President Barack Obama would choose Lawrence Summers as the next chairman of the Federal Reserve.
The former treasury secretary is seen as more averse to stimulus measures than current Fed chief Ben Bernanke - a pullback on the Fed's monetary easing measures tends to be viewed as dollar-positive.
“If Summers is indeed the choice, that could... lead to dollar buying,” Kengo Suzuki, forex strategist at Mizuho Securities, told Dow Jones Newswires.
US Secretary of State John Kerry and his Russian counterpart are holding talks in Geneva aimed at getting the Syrian regime to give up its chemical weapons, and so avoid an American military strike.
Damascus on Thursday said it would sign up to the global convention banning chemical weapons after Russia proposed a plan to put its toxic arsenal under international control
The European single currency came under pressure after a report showed eurozone factory output fell sharply in July to its lowest level in more than three years, raising doubts about the 17-nation bloc's nascent recovery.
The dollar was mostly higher against other Asia-Pacific currencies.
The US unit strengthened to Sg$1.2695 from Sg$1.2677 the previous day, to 31.83 Thai baht from 31.70 baht and to Tw$29.71
from Tw$29.68.
The dollar also firmed to 1,086 South Korean won from 1,084 won, to 63.78 Indian rupees from 63.50 rupees and to 43.85 Philippine pesos from 43.77 pesos.
The greenback slipped to 11,304 Indonesian rupiah from 11,309 rupiah, a day after Indonesia's central bank unexpectedly hiked its main interest rate in an aggressive bid to boost the currency.
The Australian dollar edged down to 92.43 US cents from 92.51 cents, while the Chinese yuan fetched 16.28 yen against 16.22 yen. - Sapa-AFP
