The greenback saw some weakness against a group of currencies on Friday due to portfolio rebalancing, but it was still expected to close the week higher as new data supported the notion that the U.S. economy is still well anchored.

According to data released on Friday, U.S. consumer spending grew more than anticipated in September, pointing to a robust fourth quarter, even if monthly inflation remained high.

The dollar index that gauges the greenback versus its major pairs dipped 0.7% at 106.5.

Despite generally positive U.S. economic statistics, the greenback has struggled to build momentum after making significant gains from July to September, according to Rai.

Before Fed and Bank of Japan policy meetings the following week, there were few changes in the currency market.

Although there is still a chance of a rate hike later this year due to continuing underlying price pressures and solid consumer spending, traders wagered on Friday that cooling inflation will keep the Fed on hold in the upcoming months.

EUR/USD advanced by 0.12% at $1.0573 on Friday.

USD/JPY dipped 0.6% at 149.515.

There is growing speculation that the Bank of Japan (BOJ) may alter its bond-yield control strategy when it meets next week. The notion of raising the current yield ceiling, which was established only three months ago, has been raised.