Dollar gains on Asia as US data reassure Asian currencies were the week's big losers as receding hopes of further monetary stimulus in the US, amid signs of a strengthening economy, raised Treasury yields and supported the dollar. The Malaysian ringgit fell furthest, down over 1.6 per cent during the week against the dollar - its biggest weekly drop in six months. The ringgit, alongside other Asian currencies, recovered somewhat near the end of the week, trading up 0.1 per cent on Friday at M$3.0570, as investors who had taken profits looked to buy back at cheaper levels. The Japanese yen followed close behind as the dollar gained ground against rival haven currencies. The yen lost 1.5 per cent against the dollar to trade at Y83.72 over the week. The Japanese currency fell 0.5 per cent on Friday after gaining 0.2 per cent back on Thursday. The Swiss franc also suffered against the dollar, down 0.4 per cent over the week to SFr0.9241 even as its central bank upped growth forecasts for the Swiss economy. India's rupee, the Philippine peso and Thai baht also suffered as China's shifting currency policy and weaker economic outlook weighed on Asian currencies. On Monday Chinese central bank officials suggested the renminbi was no longer significantly undervalued after six years of gradual appreciation, citing the country's $31.5bn trade deficit in February - its biggest since 1998. As Asian currencies weakened, the US dollar gained. The dollar index rose 0.3 per cent over the week to a high of 80.738. It retraced on Thursday before advancing 0.3 per cent to 80.420 on Friday morning. Analysts suggested the dollar's strength was underpinned by rising Treasury yields as economic data improved in recent weeks, thus reducing the dollar's appeal as a funding currency. Adrian Schmidt, strategist at Lloyds, said that the basis of the dollar rally appeared to have been a more positive assessment of US data, but that without real implications for short-term yield spreads, the impact was limited. He added: "Rises in longer-term yields are more of an indication of a decline in risk premia than a change in rate expectations, and as such could be seen as a reason to sell rather than buy dollars, given its safe haven status." Both the euro and sterling traded broadly flat over the week. The euro held above its bearish resistance level of £1.30, hitting a high of $1.3191 during the week. The single currency traded flat against the dollar at $1.3057 on Friday morning. Sterling told a similar story. The British currency gained 0.3 per cent against the dollar over the week and traded up 0.1 per cent on Friday morning at $1.5727. Sterling traded up 0.7 per cent against the euro over the week, at £0.8305, despite Fitch downgrading the outlook on its sovereign rating to negative. Elsewhere, the Mexican peso was flat against the dollar at 12.6599 pesos ahead of its central bank meeting later on Friday. Credit Suisse's Mexico economist, Alonso Cervera, suggested the central bank may remove its implicit tightening bias that has been in its policy communiqués since 2010.