The dollar held steady against other major currencies on Friday, as investors remained cautious ahead of a speech by Federal Reserve Chair Janet Yellen due later in the day amid growing expectations for an upcoming U.S. rate hike.
EUR/USD was little changed at 1.1196.
Investors were eyeing the release of U.S. economic growth data, as well as comments by Fed Chair Janet Yellen due later Friday, for futher hints on the timing of future rate hikes by the U.S. central bank.
The greenback posted sharp gains earlier in the week amid expectations for the Fed to raise interest rates in the near term after last week’s April Fed meeting minutes flagged a possible rate hike if the economy continues to improve.
USD/JPY was steady at 109.71.
Earlier Friday, official data showed that Tokyo’s consumer price index fell by an annualized rate of 0.5% in May, compared to expectations for a 0.4% slip. Core CPI, which excludes fresh food, also declined by 0.5% last month, disappointing expectations for a 0.4% fall.
Data also showed that Japan’s national CPI slipped by an annualized rate of 0.3% in April, in line with expectations. Core CPI fell by 0.3% in April, compared to expectations for a 0.4% decline.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was steady at 95.14.