The Australian dollar continued to strengthen over the week with gains to above 0.8820 against the US dollar which was close to the 18-year highs seen in July.
The currency secured support from an improvement in risk conditions which increased the flow of funds into high-yield currencies.
The Australian dollar was supported by the strength of commodity prices during the week, especially with the gold price making strong gains.
There was little in the way of domestic economic data during the week with Australian yield expectations remaining intact after a firm credit report.
The Australian currency should remain firm in the very short-term, but is vulnerable to at least a partial correction after recent rapid gains.
Canadian dollar
The Canadian dollar fluctuated around the parity level against the US currency during the week with the US dollar unable to secure a convincing recovery.
The Canadian currency was underpinned by persistent strength in oil prices during the week while wider commodity prices remained firm.
Bank of Canada Governor Dodge reported that some of the recent currency appreciation fell outside the bank's assumed range, but there was no suggestion of intervention to weaken the currency.
There was little in the way of domestic influences following the weaker than expected retail sales data at the end of last week
Overall, the Canadian fundamentals will remain strong in the short-term, but the US dollar should be able to secure at least a limited correction..
Indian rupee
The rupee has continued to take advantage of wider dollar vulnerability and strengthened to fresh 9-year highs around 39.65 against the US currency before a retreat to 39.80 on Friday as caution increased.
Capital inflows to the local stock market have remained strong with reported inflows of US$1.9bn over the past week
Finance Minister Chidambaram warned over the impact currency strength by stating that the rupee strength was problematic. The government has eased regulations on capital outflows to help ease upward pressure on the currency.
The rupee was still restrained by central bank intervention fears, although the central bank appeared relatively cautious over moving aggressively.
Rupee confidence should remain firm in the short-term on optimism over capital inflows and weak dollar confidence, but caution is still required at current levels.