Asian currencies flat as yen nears intervention zone; dollar at 19-month high

Most Asian currencies traded flat to slightly lower on Friday, with the Japanese yen nearing levels that previously triggered massive intervention from Tokyo, as the dollar hovered near a 19-month high on growing expectations the Federal Reserve will raise interest rates in December. The USD/JPY pair rose 0.08% to 159.96 after briefly crossing 160 yen overnight, prompting warnings from Japanese officials against "one-sided moves" in currency markets. The dollar index was poised for a third consecutive weekly gain, supported by strong US consumer inflation data that reinforced expectations of a 25-basis-point rate hike next month. The yen's weakness stems from expectations that the interest rate gap between Japan and the US will persist, even as the Bank of Japan prepares for further hikes. Japan's third-quarter GDP and October CPI data are due next week, while US producer price index inflation is expected later Friday.