The greenback traded flat on Friday, as investors are trying to process US inflation figures and the possible effect on the interest rate trajectory.

The dollar index that gauges the greenback versus its major pairs muted at 102.022, plunging from Thursday’s peak of 102.76.

US CPI added 0.3% in December, rose by 3.4% on annual basis while projections were 0.2% and 3.2% gain respectively.

The Cleveland Fed President Loretta Mester stated on Thursday that the most recent CPI data suggests that it would probably be too early for the central bank to lower its policy rate in March, continuing the Fed's attempt to downplay the possibility of early interest rate trims.

EUR/USD advanced by 0.1% to 1.0975, with the inflation figures in France and Spain came at 3.7% and 3.1% on annual basis.

GBP/USD edged up by 0.1% to 1.2775 post the release of Britain’s GDP that came stronger than projected, advancing by 0.3%, topping predictions at 0.2%.

USD/JPY edged down by 0.2% at 145.02, post rebounding strongly against the dollar on Thursday. Later this month, the markets are still projecting BOJ to maintain its ultra-dovish direction.