The greenback remained strong against major currencies although gains were limited in the European session.
Strong US economic growth data on Thursday gave the US dollar a boost to erase the losses it suffered following the Federal Reserve's (Fed) decision.
The US economy grew strongly at an annual rate of 2.4% in the second quarter and jobless claims also recorded a lower-than-expected decline.
This supports Fed Chairman Jerome Powell's statement that the US may be able to avoid a recession and gives the central bank an opportunity to continue raising interest rates.
At the time of writing, the dollar index, which measures the greenback's strength, was trading higher at around 101.90 against a basket of major currencies.
The release of US personal consumer expenditure (PCE) data, the Fed's preferred key inflation indicator for rate setting, will be the next for investors tonight.
Meanwhile, the yen currency continues to display volatile movements following today's Bank of Japan (BOJ) policy announcement.
Although the BOJ did not make changes in the yield control curve (YCC), it promised greater flexibility in its target range.
The 10-year Japanese government bond (JGB) yield jumped to 0.575% for the first time since 2014, while the yen oscillated between a gain of over 1% and a loss of 1.2% against the USD.
The euro, meanwhile, remained weak following its earlier fall after the European Central Bank (ECB) meeting which offered no guidance for future interest rates.
Investors are now looking forward to German inflation data in the European session for the next ECB interest rate hike.
On the other hand, the Aussie, New Zealand and Canadian dollar commodity-related currencies remained traded lower than the greenback.
