At 02:55 ET (07:55 GMT), the Dollar Index, which follows the dollar versus a basket of six other currencies, declined 0.2% to 103.877.
The dollar set strong gains on Thursday after data revealed that the U.S. labor market remained tight and assured that the country’s economy rebounded more quickly in the third quarter than previously calculated behind contracting in the year’s first half.
These numbers indicated that the Federal Reserve would have to stay on its forceful monetary policy tightening path for longer than formerly expected to get inflation under control.
Nevertheless, sentiment has changed overnight to the dollar liability, with traders also remarking that the data painted a picture of a resilient economy.
More Data
Further, several economic data releases are coming on Friday, including personal income and spending. Investors will closely monitor these. Consumer price index reports suggested that prices are cooling, leading to hopes that inflation may have peaked.
USD/JPY increased 0.2% to 132.52, with the yen handing back some of the week’s strong gains because the BOJ decided to permit the 10-year bond yield to move in a wider band.
Data published Friday revealed that Japan’s consumer prices, except fresh food, climbed 3.7% in November from a year ago, revving at the fastest pace since 1981, an outcome that could point to additional policy changes by the Bank of Japan in January.
Elsewhere, EUR/USD climbed 0.3% to 1.0628 following French PPI climbed 1.2% in November, much more than the decline of 0.2% seen the prior month, indicating inflation will be a difficult nut to crack in the eurozone.
