Amid caution ahead of next week's critical inflation data release, the U.S. dollar moved higher on Friday, on track to record another strong week.

The dollar index that gauges the greenback versus its major pairs, traded 0.1% higher at 103.207 and is expected to score its second consecutive week of gains, a streak it hasn't experienced since October.

Despite exceeding expectations and surging for the first time in six weeks, the number of Americans submitting new claims for unemployment benefits remained historically low.

EUR/USD slumped by 0.1% at 1.0726.

GBP/USD after data on Friday revealed that the UK's gross domestic product dipped 0.5% on the month in December but remained flat in the fourth quarter, the currency dropped 0.1% to 1.2105, suggesting the economy narrowly averted a technical recession after losing 0.3% in the quarter from July to September.

USD/JPY remained largely constant at 131.59.