The greenback slid on Friday, but was on course for touching gain for the second week in a row on growing scepticism regarding the Fed’s March interest rate reductions.

The dollar index that gauges the greenback versus its major pairs ticked down by 0.1% at 103.212 but edged over 1% till now during the week.

The central bank is expected to begin reducing interest rates by Q1, but signs of the economy's resiliency have dashed those hopes.

EUR/USD steadied at 1.0874, with eyes on ECB’s comment at Davos.

GBP/USD plunged by 0.3% to 1.2670, the pound dropped after the country's retail sales fell 3.2% in December, the biggest decline since January 2021.

USD/JPY dipped 148.11, with the yen poised to plunge further 2% during the week.

Figures released on Friday revealed that consumer inflation in Japan reached its lowest level since June 2022 in December, putting the BOJ's ultra-dovish stance largely on hold when it meets the following week.