Investing.com - The dollar pushed higher against a basket of other major currencies on Friday, after relatively positive U.S. inflation data and as investors awaited comments by Federal Reserve Chair Janet Yellen later in the day.
In a report, the Department of Labor said that the U.S. consumer price index rose 0.1% in April, in line with expectations and after a 0.2% gain the previous month.
Year-on-year, consumer prices slipped 0.2% last month however, compared to expectations for a 0.1% downtick, following a 0.1% fall in March.
The core consumer price index, which excludes food and energy, rose 0.3% in April, exceeding expectations for a 0.2% increase, after a 0.2% gain the previous month.
The report came after a string of downbeat U.S. data on Thursday had fuelled fresh uncertainty over the strength of the economy.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, climbed 0.64% to 96.09, off session lows of 94.89.
EUR/USD dropped 0.75% to 1.1028, pulling away from highs of 1.1208 hit earlier in the session.
The single currency found support after European Central Bank President Mario Draghi said at a conference in Portugal that the ECB's policies have helped the euro zone's economy to recover.
"The economic outlook for the euro area is brighter today than it has been for seven long years. Monetary policy is working its way through the economy. Growth is picking up. And inflation expectations have recovered from their trough," he said.
However, concerns over a possible Greek default persisted after late-night negotiations between Greek, French and German government leaders ended without any sign of a breakthrough that will unlock bailout funds.
German Finance Minister Wolfgang Schaeuble said on Friday that Greece may have to invent a "parallel currency" if progress stalls in negotiations with the country's European creditors.
The pound pushed lower, with GBP/USD down 0.92% to 1.5517.
The U.K. Office for National Statistics earlier reported that public sector net borrowing rose by £6.04 billion in April, compared to expectations for an increase of £7.80 billion.
Elsewhere, the dollar turned higher against the yen and the Swiss franc, with USD/JPY up 0.26% to 121.35 and with USD/CHF gaining 0.52% to 0.9415.
At its monthly policy meeting on Friday, the Bank of Japan kept its monetary policy on hold and signaled growing confidence in the strength of the economy.
The Australian and New Zealand dollars were weaker, with AUD/USD down 0.76% to 0.7833 and NZD/USD sliding 0.44% to 0.7316.
Meanwhile, USD/CAD advanced 0.62% to trade at 1.2276. Statistics Canada reported that retail sales increased by 0.7% in March, beating expectations for a 0.3% rise. Core retail sales, which exclude automobiles, rose 0.5% in March, compared to expectations for a 0.4% uptick.
A separate report showed that Canada's consumer prices slipped 0.1% in April, confounding expectations for a 0.1% rise.
Year-on-year, consumer prices gained 0.8% last month, disappointing expectations for an increase of 1.0%.