The dollar held on to its gains against the yen and euro on Friday, as forex investors wait for advance retail sales data from the US later in the day that could set the greenback's tone.
USD/JPY was little changed at 108.86 after rising around 0.6 percent overnight. EUR/USD dropped to 1.1328 at the start of the European session.
The greenback was on track to rise 1.8 percent on the week, after hitting an 18-month low of 105.55 against the yen last week following a decision by the Bank of Japan to stay pat on monetary policy. Verbal warnings by Japanese authorities over the past week have so far helped cool the yen's rally.
The dollar was lifted by a rally in US Treasury yields after Boston Federal Reserve President Eric Rosengren said the Fed should raise interest rates if data confirms a stronger jobs market and inflation outlook in the second quarter. He added that the markets are too pessimistic on the economy.
Forex traders will have a chance to judge the overall strength of the US economy with a batch of economic data to be released today afternoon.
