TOKYO: The dollar edged down against other major currencies on Friday as investors adjusted their positions ahead of key US economic growth data later in the day.
In Tokyo, the greenback slipped to 117.96 yen, down from 118.34 yen in New York, but still up from 117.70 yen in Asia earlier Thursday.
The euro strengthened to $1.1330 from $1.1317, while it weakened to 133.67 yen from 133.93 yen.
After upbeat jobs data on Thursday -- US unemployment insurance benefits plunged to the lowest level in nearly 15 years last week -- investors were now awaiting fourth-quarter US gross domestic product (GDP) figures, due later Friday.
"Tonight, the highlight will be US Q4 GDP," National Australia Bank said, adding that markets were eyeing a 3.0 percent on-quarter annualised expansion, building on the third quarter's stunning 5.0 percent gain.
"With the very one-sided trading in favour of the USD in the past few sessions, one would expect that a disappointing result would cause a fair amount of pain amongst investors," it added.
Market players were also awaiting a monthly inflation reading for the eurozone, which is expected to be down 0.5 percent on-year, aggravating deflation concerns.
The euro has been under pressure after the European Central Bank last week announced a huge bond-buying programme in an effort to boost lending and economic growth.
The yen was likely to struggle as weak inflation and consumer spending data Friday hike pressure on the Bank of Japan to further expand its already huge stimulus programme.
By contrast, the dollar has been winning support as growing confidence in the state of the US economy drives expectations that the Federal Reserve will start raising key interest rates in mid-2015.
"The US Federal Reserve is the only central bank in the whole world that is talking about normalising their interest-rate policy," Fernand Kong, manager of the foreign-exchange department at California-based Silicon Valley Bank, told Bloomberg News.
"I continue to see a strong dollar going forward."
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