Dollar higher in Asia

TOKYO: The dollar rose to a five-year high against the yen in Asian trade on Friday after the US Federal Reserve´s decision start decreasing its stimulus programme next month.

The greenback peaked at 104.43 yen in early trade -- its highest since October 2008 -- before retreating to 104.37 yen later in the morning but still up from 104.22 yen in New York.

The euro weakened to $1.3639 and 142.33 yen against $1.3661 and 142.41 yen.

"Going forward we expect the market to wind down gradually especially now that the Fed has made the ever-important first step, and the healthy sentiment will unlikely see a major change during the year-end period," Credit Agricole said.

It said an upward revision of third-quarter US economic growth when data is released later Friday would provide further evidence the world´s number one economy is on track.

The Fed on Wednesday said it would reduce its bond-buying by $10 billion next month to $75 billion, citing a string of upbeat figures pointing to a strong recovery.

It added that it would likely take "further measured steps at future meetings" if the economy continues to improve while keeping interest rates a record lows "well past the time" the unemployment rate declines below 6.5 percent -- its previous cut-off point before tightening monetary policy.

The news sent the greenback surging as the prospect of fewer dollars sloshing around the financial system boosted demand.

The yen has faced added pressure from speculation that the Bank of Japan (BoJ) will add to its own stimulus programme to counter any slowdown in the Japanese economy.