Investing.com - The dollar strengthened against the other major currencies on Friday, as investors awaited the release of U.S. data due later in the day for further indications on the strength of the economy amid growing uncertainty over U.S. rate hikes this year.
USD/JPY edged up 0.10% to 112.53, off Thursday’s 15-month trough of 110.98.
Sentiment slightly improved as oil prices rose after the United Arab Emirates energy minister said late Thursday that the OPEC was willing to talk with other exporters about cutting output. Crude oil futures for April delivery were still below $28 a barel in European morning hours.
The yen strengthened briefly overnight, sparking speculation that the Bank of Japan was checking currency rates, a step that often precedes intervention.
In the U.S., Federal Reserve Chair Janet Yellen reiterated on Thursday comments made the previous day to Congress.
In testimony before a congressional committee on Wednesday, Yellen said there are good reasons to believe the U.S. will stay on a path of moderate growth that will allow the Fed to pursue "gradual" adjustments to monetary policy.
But she also acknowledged risks facing the U.S. economy from tightening financial conditions driven by falling stock prices and uncertainty over China
EUR/USD declined 0.37% to trade at 1.1281, still close to the previous session’s three-and-a-half month high of 1.1377.
Preliminary data showed that euro zone gross domestic product grew 0.3% in the fourth quarter, in line with expectations and unchanged from the previous quarter. Year-on-year, the bloc’s GDP rose 1.5% in the last quarter, as expected.
The report came shortly after data showed that German GDP grew 0.3% in the fourth quarter, in line with expectations and unchanged from the previous quarter. Year-on-year, German GDP rose 2.1% in the last quarter, below expectations for a 2.3% growth rate.
A separate report showed that the euro zone’s industrial production declined by 1.0% in December, compared to expectations for a 0.3% gain.
Elsewhere, the dollar was lower against the pound, with GBP/USD up 0.50% at 1.4548 and was higher against the Swiss franc, with USD/CHF gaining 0.31% to 0.9754.
Meanwhile, the Australian dollar was steady, with AUD/USD at 0.7110, while NZD/USD dropped 0.80% to 0.6662.
The Australian Bureau of Statistics reported on Friday that home loans increased by 2.6% in December, disappointing expectations for a 3.0% gain. Home loans rose 1.9% in November, whose figure was revised from a previously estimated 1.8% increase.
USD/CAD slipped 0.13% to trade at 1.3919, as the rebound in oil prices lent support to the commodity-related Canadian currency.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was up 0.14% at 95.77, just off Thursday’s four-month low of 95.28.