Asian equities extended their global rallies that help buoyed the Australian and New Zealand dollars. At the close of Friday's trading session, the Australian dollar was poised for its first five-day advance in more than a month and the New Zealand dollar appears to gain for the first time in three weeks.

The Australian dollar traded within 1 U.S. cent against the U.S. green buck ahead of the Bank of Canada meeting which will decide if Canada will become the first member of the Group of Seven to raise borrowing costs since the end of the global financial meltdown, a sign that economic recovery is firm.

But currencies in the South Pacific are forecasted to close its worst month in more than a year on the back of lingering concern over the euro and the Greek crisis.

Robert Ronnie, head of currency research at Westpac Banking Corp.-based in Sydney said: "It's a huge week next week, and generally I think it's going to be a process that's positive for risk. The 85.75-cent level will be critical resistance for the Australian dollar."

Australia's currency traded at 85.18 U.S. cents as of 4:12 p.m. in Sydney from 85.14 cents in New York on Thursday, when it surged 3.6 percent. The currency touched 85.35 cents, the most since May 19, and is poised for a 2.4 percent weekly gain. It rose 0.2 percent to 77.68 yen.

The New Zealand dollar closed at 68.25 U.S. cents after trading an intra high of 68.64 cents, its strongest finish since May 20. The currency is set for a 0.6 percent gain this week. The kiwi dollar bought 62.22 yen from 62.25 yen, headed for a 1.9 percent rise since May 21.

The MSCI Asia Pacific Index of regional shares strengthened 1.5 percent, increasing for a third day.