Early on Friday in European trading, the U.S. dollar increased somewhat after suffering significant overnight losses as a result of dismal economic data, while the Japanese yen declined as the Bank of Japan kept interest rates at historically low levels.

The dollar index that gauges the greenback versus its major pairs added 0.1% to 101.787, post slipping 0.8%.

The dollar received a boost earlier in the week when the US Federal Reserve forecast at least two more hikes this year, despite pausing its series of rate hikes, as inflation continued to trend above the central bank’s target range.

EUR/USD slipped 0.1% to 1.0939, retreating from the earlier hit highest level in one month.

GBP/USD muted at 1.2784, post reaching a more than a year high due to growing speculation that the Bank of England will increase interest rates for the 13th consecutive meeting next week.

USD/JPY added 0.3% to 140.6, after the final significant central bank meeting of a busy week, the yen declined, and the Bank of Japan reiterated its dovish policy, which contrasts with hawkish actions taken by counterparts internationally.