Investing.com - The dollar slipped lower against against the other major currencies on Friday, as investors locked in profits from the greenback's broad rally on Thursday sparked by strong U.S. data.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was down 0.18% at 95.58, off Thursday's one-week high of 96.06.
The dollar edged lower against the yen, with USD/JPY down 0.15% to 120.85.
The dollar was boosted after data on Thursday showed that U.S. gross domestic product grew at an annual rate of 3.7% in the three months ending June 30, above expectations for growth of 3.2%.
Data also showed that the number of individuals filing for initial jobless benefits last week in the U.S. declined by 6,000 to 271,000 from the previous week’s total of 277,000.
The upbeat data added to optimism over the perspective for global economic growth, while concerns over volatility in Asian markets continued to subside. Shares in Shanghai opened higher on Friday, after closing over 5% the day before.
In Japan, data on Friday showed that household spending fell at an annual rate of 0.2% in July, compared to an increase of 1.3%, after a 2.0% drop the previous month.
A separate report showed that Tokyo's core consumer price index, which excludes fresh food, ticked down 0.1% this month, compared to expectations for a 0.2% fall, after a 0.1% slip in July.
Japan's retail sales increased by 1.6% in July, beating expectations for a 1.1% gain, data also showed.
The dollar also fell against the euro, with EUR/USD gaining 0.33% to 1.1283, after hitting one-week lows of 1.1202 on Thursday.
The single currency came under broad selling pressure after the European Central Bank warned on Wednesday that the risk to its medium-term inflation target has increased and it is prepared to expand its economic stimulus program if necessary.
The single currency rose to seven-month highs earlier in the week as investors fled to the relative safe-haven currencies amid intense volatility in markets.
The dollar was steady against the pound, with GBP/USD at 1.5403 and lower against the Swiss franc, with USD/CHF sliding 0.47% to 0.9617.
Markets shrugged a report by the Office for National Statistics on Friday showing that the U.K. GDP rose 0.7% in the second quarter, in line with expectations and unchanged from a preliminary estimate.
On a yearly basis, the U.K. economy grew at a rate of 2.6% in the last quarter, in line with market expectations.
The Australian and New Zealand dollars were little changed, with AUD/USD at 0.7160 and with NZD/USD at 0.6472.
Meanwhile, USD/CAD added 0.11% to 1.3215.