Investing.com - The dollar was broadly higher a basket of other major currencies on Friday, as investors eyed the release of first-quarter U.S. economic growth data and as expectations for a U.S. rate hike in the coming months continued to support.
Demand for the dollar continued to be underpinned as economic data released in the past week, including reports on inflation, new home sales, business investment and consumer confidence all indicated that the U.S. economy is gaining momentum after a slowdown in the first quarter.
Market participants were looking ahead to preliminary first-quarter U.S. economic growth data due later in the day, for further indications on the strength of the economy.
Expectations that the economy will rebound have supported the view that the Federal Reserve will begin to hike interest rates around September.
USD/JPY was down 0.09% to 123.83, not far from Thursday's 13-year peak of 124.47.
In Japan, data earlier showed that industrial production increased by 1.0% last month, exceeding expectations for a 0.8% rise, after a 0.8% fall in March.
A separate report showed that Japan's household spending dropped 5.5% in April, compared to expectations for a 0.7% slip, after a 2.4% rise the previous month.
Data also showed that consumer prices in Japan ticked up at an annualized rate of 0.6% last month, in line with expectations, after a 2.3% increase in March.
The euro edged higher, with EUR/USD up 0.11% to 1.0960 after data showed that German retail sales rose 1.7% last month, beating expectations for a 0.8% gain.
Separately, a preliminary report showed that Spanish consumer prices slipped 0.2% this month, compared to expectations for a 0.5% decline, after a 0.6% fall in April.
But gains were capped as Greece's creditors said late Thursday that a deal to unlock rescue aid was not imminent. Athens had claimed a solution could be reached by Sunday.
The pound was lower, with GBP/USD down 0.19% to 1.5287, while the Swiss franc held steady, with USD/CHF at 0.9442.
Data earlier showed that the KOF economic barometer for Switzerland rose to 93.1 this month from 89.8 in April, whose figure was revised from a previously estimated reading of 89.5. Analysts had expected the barometer to rise to 90.0 in May.
The Australian dollar was little changed, with AUD/USD at 0.7648, while NZD/USD declined 0.77% to trade at 0.7122.
USD/CAD edged up 0.08% to 1.2443, after hitting six-week highs of 1.2538 on Thursday.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was steady at 97.06, close to Wednesday's five-week highs of 97.88.