Investing.com - The dollar remained moderately higher against other major currencies on Friday, amid fresh optimism over the outlook for the U.S. economy and as investors eyed the release of U.S. economic reports due later in the day.
The Mexican trimmed earlier losses, with USD/MXN steady at 21.2162. The Mexican currency had dropped earlier, after U.S. President Donald Trump suggested late Thursday the implementation of a 20% tax on Mexican goods to pay for a border wall.
The comments came after the U.S. President ordered construction of a U.S.-Mexican border wall and punishment for cities shielding illegal immigrants.
The dollar has been under pressure since Donald Trump’s inauguration last Friday amid concerns over a lack of clarity on his economic policies and fears that his protectionist trade stance could hit corporate profits and act as a drag on growth.
The euro was also little changed, with EUR/USD at 1.0677.
Elsewhere, GBP/USD declined 0.52% to trade at 1.2534, off Thursday’s six-week high of 1.2680.
Investors remained cautious as U.K. Prime Minister Theresa May was set to meet with Donald Trump later Friday.
The two leaders were expected to discuss the possibility of a trade deal between their countries.
USD/JPY climbed 0.45% to 115.06, the highest since January 20, while USD/CHF edged up 0.09% to trade at 1.0007.
Data earlier showed that Tokyo’s consumer price index rose by an annualized rate of 0.1% in January, beating expectations for a flat reading.
Tokyo’s core CPI, which excludes fresh food, slipped 0.3% this month, compared to expectations for a 0.4% fall.
The Australian dollar was slightly weaker, with AUD/USD down 0.09% at 0.7528, while NZD/USD held steady at 0.7247
Meanwhile, USD/CAD added 0.17% to trade at 1.3115.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was up 0.15% at 100.67, off the previous session’s seven-week low of 99.77.