Early Friday in European trade, the U.S. dollar plunged to a one-year low amid rising hopes that the Federal Reserve's cycle of rate tightening will come to an early stop due to inflation readings that were less hot than anticipated.

The dollar index which gauges the US dollar versus its major pairs, traded 0.2% down at 100.515, down from levels last touched in April of last year.

The index is expected to experience its worst weekly fall since January, which will be more than 1%.

The PPI experienced its weakest annual gain in more than two years, climbing 2.7% from a year earlier. The so-called core PPI, which excludes the volatile food and energy components, down 0.1% from February and gained 3.4% from a year earlier.

EUR/USD edged up 0.2% to 1.1069, soaring to a new one-year high as data on Thursday revealed that German consumer prices remained high, suggesting that the European Central Bank will keep raising interest rates for extended period compared to its US counterpart.

GBP/USD ticked up by 0.1% to 1.2535, reaching a 10-month high, with the BOE expected to raise rates once again in May, and with U.K. inflation persisting in double digits after unexpectedly picking up to 10.4% in February.

USD/JPY slumped by 0.1% to 132.50.