The dollar firmed against the euro on Friday, after a U.S. report on producer prices showed higher than expected core inflation, increasing the chance of higher rates.
Producer prices excluding food and energy rose 0.8 percent in January, above economists' forecasts for a core reading up 0.2 percent. That was the biggest jump in core prices in six years.
The headline producer price index rose 0.3 percent, compared with economists' forecasts for a rise of 0.2 percent.
The euro initially slipped to session lows around $1.3015 according to data from around $1.3044 shortly before the report and down about 0.4 percent from levels late on Thursday in New York.
Against the yen the dollar rose to session highs around 105.73 yen, up from around 105.50 yen shortly before the report and higher than its levels late on Thursday.