The dollar rose on Friday after the release of a US gross domestic product report that was in line with economists expectations. US GDP grew at a 0.7 percent annual rate in the fourth quarter, after 2 percent growth in the third, but was near economists' revised expectations. Lower oil prices have continued to undermine investment by energy firms and unseasonably mild weather cut into consumer spending on utilities and apparel.
Growth also moderated as businesses stepped up efforts to reduce an inventory glut and as a robust dollar and tepid global demand weighed on exports. The economy grew 2.4 percent in 2015 after a similar expansion in 2014. The dollar touched a new US session high against the yen, which was on track for its biggest daily fall since October 31, 2014. The greenback rose more than 2 percent against the yen after the data to 121.28 yen, the highest rate for the dollar against the Japanese currency since December.
The euro fell to a session low against the dollar after the GDP report, dropping 0.6 percent to $1.0870. The dollar index, tracking the dollar against a basket of major currencies, rose 0.9 percent to 99.419. The dollar has been rising since the Bank of Japan stunned markets overnight by joining a handful of major central banks in adopting negative interest rates.