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· The dollar was headed on Friday for its highest weekly finish against the safe-haven yen since May, as data showing the U.S. economy is on a firm footing had investors scaling back rate-cut bets.

“There seems to be pretty good optimism around the trade talks going on between U.S. and China,” said William O’Loughlin, a portfolio manager at Rivkin Securities in Sydney.

“Though as we know that can change on a dime...the rally doesn’t feel like a euphoric, super-bullish rally, it does feel like climbing the wall of worry.”

On Friday, the dollar drifted lower on the yen and against the Australian and New Zealand dollars, but not much. It bought 109.46 yen JPY=, and if it holds there will post a 0.7% gain for the week and hit its highest weekly close since May 31.

Sterling was steady on Friday at $1.2910, while the euro EUR= held at $1.1010.

China's yuan CNH= was steady at 7.0317 per dollar in offshore trade.

· The Hong Kong Human Rights and Democracy Act of 2019, signed into law by U.S. President Donald Trump, is touted by Congress as a way to deter Beijing’s influence and interference in Hong Kong’s internal affairs.

But if Hong Kong’s so-called special status is compromised as a result of the law, the city’s economy could be damaged — bringing down with it the U.S. and China.

The U.S. and Hong Kong have a tight trade and financial relationship that’s largely built upon the city’s trusted position as a relatively safe place to access China.

While Hong Kong’s economic growth contribution to China has diminished through the years, the city has remained an important financial center for mainland businesses.

· South Korea’s central bank left its policy rate steady, as expected, at its last meeting of the year on Friday, taking time out to assess the effects of its recent easings on an economy hit hard by the Sino-U.S. trade war and cooling global demand.

While predicting the rate would be left unchanged at Friday’s meeting, 11 out of the 14 economists surveyed by Reuters saw the Bank of Korea cutting the rate next year to 1.0% or lower, which would be the lowest since it adopted the current policy system in 1999.

· Bank of Japan Governor Haruhiko Kuroda said on Friday that the central bank would not hesitate to ease policy further if the momentum towards its price stability target is lost as there’s “ample room” for more easing.

· Breaking a month-long lull in missile tests, North Korea fired two short range projectiles into the sea off its east coast on Thursday in what appeared to be the latest try out of its new multiple rocket launchers, South Korea’s military said.

The test-firing came as the clock ticks down on the year-end deadline that Pyongyang had given the United States to show flexibility in their stalled denuclearization talks.

· Oil prices were mixed on Friday in quiet trade with the U.S. Thanksgiving holiday limiting activity, while investors awaited a meeting of OPEC and its allies next week that may result in the extension of an output cut agreement to support the market.

Brent crude futures LCOc1 were down 8 cents, or 0.1%, at $63.79 a barrel by 0740 GMT. Brent futures are set for a slight gain of 0.6% for the week, the fourth weekly increase, during which prices have climbed 3.4%.

West Texas Intermediate (WTI) futures CLc1 were up 4 cents, or 0.1%, at $58.15 a barrel.

For the week, WTI is set to gain 0.6%, the fourth weekly increase, during which prices have risen 3.4%.