• The dollar lost momentum on Friday as U.S. Federal Reserve Chair Janet Yellen spoke of a gradual pace of rate hikes and sounded less hawkish than some had expected, while investors braced for U.S. President-elect Donald Trump to be sworn in.
• The dollar index .DXY, which tracks the greenback against six major currencies, fell 0.2 percent to 100.97. It was on track to shed 0.2 percent for the week.
• "Yellen did not particularly talk about speeding up the pace of rate hikes, which may have sounded as less hawkish for some," said FPG Securities President Koji Fukaya.
• Investors are now awaiting the inauguration of Trump later on Friday for catalysts.
• "The dollar could fall if Trump pushes forward his protectionist rhetoric in his inauguration speech," said Minori Uchida, chief FX analyst at Bank of Tokyo Mitsubishi UFJ.
• "Some investors also expect more details on his policies, so the dollar could also slip if Trump does not mention any specifics."
• The dollar was last down 0.1 percent against the yen at 114.75 yen JPY=EBS, on track for a weekly gain of 0.2percent. The greenback retreated from a one-week high of 115.63 yen marked on Thursday, helped by the strong U.S. data and resulting rise in Treasury yields.
• The euro gained 0.2 percent at $1.0679 EUR=EBS, adding to the rebound on the previous day after the announcement from the European Central Bank. It was up 0.3 percent for the week.
• China's economy grew a faster-than-expected 6.8 percent in the fourth quarter, boosted by higher government spending and record bank lending, giving it a tailwind heading into what is expected to be a turbulent year.
The fourth quarter was the first time in two years that the world's second-largest economy has shown an uptick in economic growth, but this year it faces further pressure to cool its housing market, the impact of government efforts at structural reforms, and a potentially testy relationship with a new U.S. administration.
• Japanese Prime Minister Shinzo Abe, speaking in parliament hours before U.S. President-elect Donald Trump takes office, said on Friday he wanted to further strengthen the Japan-U.S. alliance.
"The Japan-U.S. alliance has been, is and will be the cornerstone of our country's diplomatic and security policies. This is an immutable principle," Abe said in his policy speech at the start of the regular parliament session.
"I am aiming to visit the United States as soon as possible to further fortify the bond of alliance together with new President Trump."
• Donald Trump is preparing to sign executive actions on his first day in the White House on Friday to take the opening steps to crack down on immigration, build a wall on the U.S.-Mexican border and roll back outgoing President Barack Obama's policies.
• Oil climbed for a second day on Friday underpinned by expectations of tighter supply and on reports of record Chinese demand, but prices remained under pressure from rising U.S. crude and gasoline inventories.
Brent crude, the international benchmark, rose 29 cents to $54.45 a barrel 0756 GMT. U.S. West Texas Intermediate (WTI) crude oil futures were trading up 8 cents at $51.45 per barrel.
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