The dollar posted gains in Asia on Friday, rebounding from a sharp fall this week following market turmoil in the wake of President-elect Donald Trump's first formal news conference since taking office as investors turned attention back to rate hike prospects this year.
In China, the trade balance came in at a surplus of $40.82 billion for December with exports down 6.1% and imports up 3.1%.
USD/JPY changed hands at 115.12, up 0.42%, while AUD/USD traded at 0.7479, down 0.03% with The currency seen as a good bellwether for sentiment on China because of tight trade links in commodities.
The U.S. dollar index, which measures the greenback against a basket of currencies, rose 0.21% to 101.56.
In sparse remarks, Federal Reserve Chair Janet Yellen on Thursday said she has no major worries for the U.S. economy over the short term.
The labor market is "strong," wage growth is "beginning to pick up," and inflation is a little below the Fed's 2% target "but pretty close," she told a group of economics teachers in Washington, D.C. on Thursday evening.
Overnight, the dollar fell as investors awaited clarity on Trump's fiscal policy, including details on proposed tax cuts and infrastructure spending.
Forex markets were also reeling from the downturn in the Mexican market, as the peso yesterday went to record lows, on growing concerns over Trump's now confirmed plans to build a wall to protect the U.S. from the influx of illegal aliens from Mexico, as well as to renegotiate NAFTA, and ensure more manufacturing jobs stay in the U.S., rather than flee overseas.
"Mexico has taken advantage of the United States," said Trump, during his presser at Trump Tower in Manhattan. "It's not going to happen anymore."