The Australian dollar found support close to the 0.8750 level against the US currency and pushed back to highs around 0.9130 late in the week as the dollar crumbled.
The headline consumer inflation rate was held to 0.7% in the third quarter with an annual rate of 1.9%. The underlying rate was higher than expected with a 2.9% annual increase, close to the 3.0% Reserve Bank ceiling.
There was increased speculation over a Reserve Bank interest rate increase at the November central bank meeting with markets estimating an 80% chance of a hike.
The Australian dollar drew support from high commodity prices, but the currency was still unsettled at times by increases in risk aversion.
In the near term, strong yield support will battle with an increase in risk aversion for supremacy with the markets attempting to secure further gains.
Canadian dollar
The Canadian dollar resisted pressure for a correction against the US currency and challenged 31-year highs as the US dollar came under wider selling pressure. The Canadian currency was again supported by the high level of oil prices.
The headline retail sales data was stronger than expected at 0.7%, although the underlying data was close to expectations.
Bank of Canada Governor Dodge stated that the currency gains had been abnormally rapid, although there was no evidence of intervention.
There will still be pressure for an underlying correction weaker after recent rapid gains, especially as credit-related fears will remain an important background factor.
Indian rupee
The rupee recovered from last week's losses and strengthened towards the 39.55 level against the US dollar during the week.
There was evidence of stock market inflows even though investors were still cautious. Regulators confirmed that there would be tighter controls on unregistered investors but the market response was more composed than the previous week.
The rupee was stifled by further reports of central bank intervention during the week while the high level of oil prices also tended to undermine the Indian currency.
The generally firm tone for Asian currencies helped support the rupee, especially as the US dollar remained under wider selling pressure.
Rupee volatility is liable to remain higher in the short-term and there is still the risk of a sharp correction weaker.