Speaking in an online presentation of the bank's quarterly inflation update, Agbal said demand conditions in Q4 also kept an upward pressure on inflation, which ended 2020 higher than expected.
Still, the prospect that rising yields will continue burnishing the dollar's attractiveness has given pause to some investors betting on more declines in the greenback.
An improving economic outlook as COVID-19 vaccines are rolled out and unprecedented fiscal and monetary stimulus has dimmed the allure of the greenback.
The US currency is also suffering from rising fiscal and current account deficits that show no signs of slowing down.
China will maintain policy support for its economic recovery, avoiding a sudden shift in policy, to help keep economic growth within a reasonable range in 2021, the Xinhua news agency said on Friday.
The Bank of Japan ends its two-day policy meeting on Friday and is expected to leave rates steady but announce an extension of a package of steps aimed at easing corporate funding strains.
The BOJ's move comes ahead of its two-day rate review that concludes on Friday, when it is expected to extend the March 2021 deadlines of a range of measures aimed at easing corporate funding strains.