Dollar Edges Higher Against Most Major Rivals

The dollar was higher against most other major currencies in Asian trade Friday, taking its cues from rising risk aversion as most stock markets across the region traded with a weaker tone.

The dollar bought 93.03 yen, slightly up from 92.99 yen in late North American trading on Thursday, holding well above a more-than-four-month low of 91.81 hit Wednesday.

"The correlation between risk aversion and currencies has decreased over recent weeks. We continue to expect risk aversion to play an important role in driving currencies, but it will not be as dominant a factor as it has been over the past year," said analysts at Calyon

"Our expectations of improved risk appetite over the coming months point to further U.S. dollar weakness," they said in a research note.

The dollar index (DXY), a measure of the greenback against a trade-weighted basket of six major currencies, was at 80.181, up from 79.879 in late North American trading on Thursday.

The euro bought $1.3963, down from $1.4036 late Thursday. The British pound was at $1.6282, down from $1.6338 late Thursday.

The Australian dollar bought 78.11 U.S. cents, down from 78.46 U.S. cents Thursday.

On the data front, Japan's domestic corporate goods price index, the nation's benchmark measure of wholesale prices, fell a record 6.6% in June from the year-ago period, the Bank of Japan said Friday. The report had a muted effect on currency trading, but suggested that deflationary pressures persist in Japan.

The Bank of Japan is scheduled to hold a regular policy meeting next week, and could extend some of its programs designed to add liquidity to the nation's financial markets.