The dollar was almost unchanged against other major currencies on Friday, as geopolitical tensions re-emerged and investors eyed the release of U.S. economic reports later in the day.
Markets were jittery after U.S. President Donald Trump said he will either renegotiate or terminate a “horrible” trade deal with South Korea.
The comments came shortly after Trump said that there is a chance the U.S. could have ‘a major conflict with North Korea.’
Market participants were also looking ahead to the release of reports on U.S. first-quarter growth and consumer sentiment, due later Friday.
EUR/USD was little changed at 1.0871 after weakening broadly on Thursday when European Central Bank President Mario Draghi said there isn’t enough evidence to change the ECB’s inflation outlook.
The remarks came after the central bank left its benchmark interest rate unchanged at a record-low 0.0%, in line with forecasts.
GBP/USD held steady at 1.2904, just off a six-month peak of 1.2916 hit overnight.
Elsewhere, USD/JPY held steady at 111.22 after data earlier showed that Japan’s household spending declined 2.0% in March, compared to expectations for a 0.8% fall.
Data also showed that Japan’s consumer price index rose by an annualized rate of 0.2% last month, below expectations for a 0.3% gain.
Meanwhile, industrial production dropped 2.1% in March, according to preliminary data, compared to forecasts for a 0.8% slide.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was steady at 99.06.