Investing.com - The dollar regained strength against the other major currencies on Friday, after the People's Bank of China set a higher yuan guidance rate for the first time in nine days.
USD/JPY climbed 0.54% to 118.29, off the previous session’s four-month low of 116.45.
The dollar found support after the PBOC strengthened the yuan's midpoint rate for the first time in nine days on Friday, fixing it at 6.5636 per dollar, compared with the previous fix of 6.5646.
However, China was expected to continue allowing the yuan to weaken in the longer term in a bid to help its exporters and remain competitive against its regional rivals.
In addition, China announced late on Thursday that it suspended its new stock market circuit breaker introduced only on Monday as the system failed to reduce market volatility.
Separately, investors were awaiting the release of key U.S. employment data due later in the day for further indications on the strength of the country’s job market.
EUR/USD slid 0.59% to 1.0867.
Elsewhere, the dollar was steady against the pound, with GBP/USD at 1.4606, near the previous session’s five-year low of 1.4529 and was higher against the Swiss franc, with USD/CHF advancing 0.76% to 1.0009.
Earlier Friday, the U.K. Office for National Statistics said the trade deficit narrowed to £10.64 billion in November from £11.20 billion in October, whose figure was revised from a previously estimated deficit of £11.83 billion.
Analysts had expected the trade deficit to narrow to £10.50 billion in November.
The Australian dollar edged higher, with AUD/USD up 0.14% at 0.7021, while NZD/USD eased 0.08% to 0.6620.
Meanwhile, USD/CAD was little changed at 1.4117, close to Thursday’s 12-1/2 year peak of 1.4171.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was up 0.53% at 98.81.