Investing.com - The dollar edged higher against a basket of other major currencies on Friday, as mounting concerns over the outlook for global economic growth fuelled demand for the safe-haven greenback.
The US Dollar Index, which tracks the performance of the greenback against a basket of six major currencies, added 0.16% to 85.82, re-approaching the four-year peak of 86.87 hit last Friday.
Market sentiment came under pressure amid growing concerns over the global economy after the International Monetary Fund cut its global economic growth forecasts for the third time this year on Tuesday and warned that the recovery remains weak and uneven.
The dollar found some support after the U.S. Department of Labor reported on Thursday that the number of individuals filing for initial jobless benefits in the week ending October 4 decreased by 1,000 to 287,000 from the previous week’s revised total of 288,000.
However, the minutes of the Federal Reserve's September 16-17 policy meeting continued to weigh on the greenback, as they suggested that the bank is in no hurry to raise interest rates and raised concerns over the dollar's strength.
USD/JPY edged up 0.19% to trade at 108.03. Earlier Friday, the minutes of the Bank of Japan's September 3-4 policy meeting showed that some members voiced concerns over possible adverse effects of additional stimulus measures.
These concerns raised the prospect of the first policy split vote under BoJ Governor Haruhiko Kuroda's mandate, even as the central bank head continues to emphasize his readiness to take fresh action to meet the BOJ's 2% inflation target, if needed.
On Tuesday, the BoJ left monetary policy unchanged at its policy meeting, but acknowledged that declining domestic demand as a result of a sales tax increase in April was leading to economic weakness.
Separately, official data on Friday showed that tertiary industry activity slipped 0.1% in August, confounding expectations for a 0.2% rise, after a 0.3% fall in July.
EUR/USD slipped 0.16% to 1.2970. Official data on Friday showed that French industrial production was flat in August, compared to expectations for a 0.2% fall. July's figure was revised to a 0.3% gain from a previously estimated 0.2% rise.
The pound and the Swiss franc also slipped lower, with GBP/USD down 0.35% to trade at 1.6060 and USD/CHF edging up 0.15% to 0.9555.
In a report, the U.K. Office for National Statistics said the trade deficit narrowed to £9.10 billion in August from £10.41 billion in July, whose figure was revised from a previously estimated deficit of £10.19 billion.
Analysts had expected the trade deficit to narrow to £9.60 billion in August.
The commodity linked dollars were broadly weaker, with AUD/USD down 0.71% to 0.8721, NZD/USD dropping 0.53% to trade at 0.7822 and USD/CAD up 0.19% to 1.1205.
Earlier in the day, the Australian Bureau of Statistics said home loans fell 0.9% in August, disappointing expectations for a 0.1% rise, after an increase of 0.3% in July.