THE dollar was higher at noon and trading in a tight range, close to a two-year high, as investors take stock after a dramatic week on currency markets.
At 12.00pm (AEST) on Friday, the local unit was trading at 93.82 US cents, up from Thursday's close of 93.55 US cents.
It reached 94.57 US cents earlier in the week, the highest since August 2008.
Since 7.00am (AEST), the local currency traded between 93.52 US cents and 93.85 US cents.
Nomura Australia chief economist Stephen Roberts said with no economic data expected today, the local unit had settled into a comfortable trading range.
He said he expected the unit to maintain its intra-day range up to Friday's offshore session.
"It's just sort of worked itself into a groove after the events of the week," he said.
Japan on Wednesday intervened in currency markets for the first time since 2004 in a bid to stem the yen's appreciation against the dollar, Finance Minister Yoshihiko Noda said.
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The US dollar had hit a fresh 15-year low of 82.86 yen in Tokyo before gaining sharply following the intervention.
Hours before the Bank of Japan made its announcement, the local dollar hit 94.57 US cents, its highest level against the US dollar since August 1, 2008.
Mr Roberts said with no market moving data due in the US on Friday, and nothing domestically until next Tuesday, the local unit would continue to trade in line with its current range.
On Tuesday the Reserve Bank (RBA) is due to publish the minutes of its September board meeting, at which the bank left the cash rate unchanged at 4.5 per cent.
It was the fourth straight month the RBA opted to leave the cash rate alone.
Mr Roberts said analysts would look for a more hawkish tone on the economy or some hint as to when the central bank will next lift the cash rate.
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