NEW YORK: The dollar gained on Friday as investors grew concerned about a US inflation report next week that could show a number that is higher than markets forecast amid data showing expectations for a continued rise in prices over the next year.

The yen also rose across the board with Kazuo Ueda reportedly set to become the next Bank of Japan (BOJ) governor but pared gains after he said the central bank’s monetary policy was appropriate. The Japanese unit was on track for its first weekly gain versus the dollar after posting losses for three straight weeks.

Data next Tuesday is likely to show that the US consumer price index (CPI) climbing 0.4% month-on-month in January and the core CPI gaining 0.4% as well, according to a Reuters poll.

In afternoon trading, the dollar index, which measures the greenback against six other currencies, was up 0.4% at 103.55.

The euro and sterling both fell more than 1% against the Japanese currency and were last down roughly 0.7% at 140.34 yen and down 0.5% at 158.60 yen, respectively.

The BOJ shocked markets in December when it raised the cap on 10-year government bond yields to 0.5% from 0.25%, doubling the band it would permit above or below its target of zero.

The pound was down 0.5% at $1.2056. Earlier in the session, Britain managed to avoid a technical recession, with the economy showing zero growth in the final three months of 2022. The euro fell 0.6% to $1.0679 and was set for a second straight week of losses.