The U.S. dollar climbed against its major counterparts in the Asian session on Friday amid risk aversion, as investors fret about the impact of trade wars and sanctions on Russia.
The second tranche of tariffs, which are due to take effect on August 23rd, follows the first tranche of tariffs on approximately $34 billion of Chinese imports that went into effect on July 6th.
Investors focused on ongoing trade talks between the U.S. and Japan in Washington. In a statement, U.S. Trade Representative Robert Lighthizer said that officials from both countries "had a thorough and constructive exchange of views on all bilateral trade issues" and "understand each other's conditions for further discussions and plan to move forward with additional talks."
The U.S. consumer inflation data is due later in the day, with economists forecasting a 2.9 percent gain on year in July.
The greenback bounced off to 111.02 against the yen, from more than a 2-week low of 110.68 seen at 12:30 am ET. The next likely resistance for the greenback is seen around the 113.00 level.
Data from the Cabinet Office showed that Japan's gross domestic product expanded a seasonally adjusted 0.5 percent on quarter in the second quarter of 2018.
That exceeded expectations for an increase of 0.3 percent following the 0.2 percent loss in the three months prior.
The greenback climbed to a 4-day high of 0.9975 against the franc and more than a 1-year high of 1.1432 against the euro, from its early lows of 0.9928 and 1.1537, respectively. The greenback is seen finding resistance around 1.01 against the franc and 1.13 against the euro.
Having fallen to 1.2836 against the pound at 8:45 pm ET, the greenback reversed direction and advanced to near a 1-year high of 1.2774. On the upside, 1.26 is possibly seen as the next resistance level for the greenback.
The greenback strengthened to a 2-day high of 1.3103 against the loonie, more than 7-month high of 0.7281 against the aussie and a 2-1/2-year high of 0.6570 against the kiwi, reversing from its early lows of 1.3044, 0.7380 and 0.6621, respectively. If the greenback rises further, 1.32, 0.71 and 0.65 are possibly seen as its next resistance levels against the loonie, the aussie and the kiwi, respectively.
Looking ahead, U.K. trade data, industrial production and construction output for June and preliminary GDP data for the second quarter are due in the European session.
In the New York session, Canada jobs data, U.S. CPI and monthly budget statement, all for July, are scheduled for release.