Financial markets are heading into the weekend with attention paid to trade negotiations between Washington and Beijing that are due to start on Saturday in Switzerland.

While Trump is raising the prospect of trade relaxation with China, optimism that global disruptions caused by trade wars may not be as severe as markets feared.

The euro remained stable in Asia in the morning, down 0.6% over the week, to $1.1217. The yen weakened by around 0.7% this week and hit a one-month low of 146.18 per dollar, before settling around 145.78

The pound, which had risen following reports of an impending trade deal between the United States and the United Kingdom, lost its gains when the deal proved to be quite limited and hit a three-week low of $1.3220 at the start of trading on Friday.

The Australian dollar recorded its first weekly decline in a month, dropping 0.7% to $0.6391. The New Zealand dollar also fell to $0.5892

The Singapore dollar is not far from its highest levels in ten years.

The Hong Kong dollar retreated from the strong side of its band after a massive intervention by the Hong Kong Monetary Authority.

Aussie slid 0.2 percent to $0.6387 after falling 0.4 percent overnight from a five-month high of $0.6515 on Wednesday.

The New Zealand dollar fell by 0.3% to $0.5886 after losing 0.6% overnight, falling even further from a six-month high of $0.6029 at the end of April.

The rupee fell by 1.04% on Wednesday, registering its worst session in more than two years. The currency came under pressure during the afternoon session after India reported on Pakistan's attempts to engage military targets.

Officials from Beijing and Washington are preparing to meet in Switzerland on Saturday for negotiations that, according to markets, could be the first step towards resolving the trade war that is disrupting the global economy. At 03:30 GMT, the onshore yuan was down 0.06% at 7.2492 per dollar, while its offshore counterpart was

The South African rand is stagnant as global attention is focused on the American interest rate decision. At 07:55 GMT, the rand traded at 18.18 against the dollar, not far from Thursday's closing level of 18.2075.