The U.S. dollar firmed against other major currencies in European deals on Friday, as positive jobless claims data added optimism that U.S. economic recovery is gaining traction.
The report released by the Labor Department on Thursday showed that initial jobless claims edged down to a new five-year low of 323,000 from the previous week's revised figure of 327,000.
The data also triggered investor speculation that the Federal Reserve may tighten its monetary policy in the present year instead of 2014. Federal Reserve's quantitative easing program, which is oriented to boost economic growth and hiring, tends to debase U.S. currency.
The dollar broke the key 101 mark against the yen, reaching 101.41 for the first since April 2009. The greenback may eye resistance around 105.00 level.
The greenback advanced to 1.5384 against the pound, its highest since April 25. This is up 0.41 percent from yesterday's close of 1.5448. If the greenback extends uptrend, next near term resistance of 1.53 is on the cards.
UK's construction output decreased in the first quarter to the lowest level in around fourteen years, preliminary data released by the Office for National Statistics showed.
Construction output declined a seasonally adjusted 2.4 percent quarter-on-quarter during the three moths ended March, taking the overall volume to the lowest level since the fourth quarter of 1998
The greenback appreciated to a 2-week high of 1.2990 against the euro, compared to Thursday's close of 1.3042. On the upside, greenback has target around 1.29 level.
Germany's exports grew 0.5 percent month-on-month in March, partially offsetting the 1.2 percent drop in February, the Federal Statistical Office said today.
Imports grew 0.8 percent on a monthly basis, after declining 3.9 percent in the prior month.
The greenback rallied to an 8-month high of 0.9586 against the franc, after reversing from Thursday's multi-day low of 0.9333. The greenback is poised to break next upside target level around 0.975.
The U.S. currency hit a 1-week high of 1.0099 against the loonie following yesterday's slide of near 3-month low of 1.0013. The greenback advanced to near a 2-month high of 0.8324 against the kiwi and a 10-month high of 1.0021 against the aussie, up from Thursday's close of 0.8390 and 1.0090, respectively.
Canada's job data and U.S. monthly budget statement for April, the Federal Reserve chairman Ben Bernanke's speech are expected to influence trading in the North American session.
