The dollar eased back from two-month highs against the yen, with USD/JPY ending Friday's session at 100.19 after rising as high as 100.42 earlier. For the week, the pair gained 1.04%, the third straight weekly gain.
EUR/USD ended Friday's session at 1.3497, 0.29% higher for the day, extending the week's gains to 0.66%.
Sterling was higher against the dollar on Friday, with GBP/USD settling at 1.6120, 0.35% higher for the day. For the week, the pair was up 0.84%.
The dollar slipped after a report showed that the Federal Reserve's Empire state manufacturing index fell to -2.21 from 1.52 in October. Economists had forecast a rise to 5.0.
A separate report showed that U.S. industrial production fell 0.1% in October, after rising by 0.7% in September, compared to expectations for a 0.2% increase.
n at 1.3497, 0.29% higher for the day, extending the week's gains to 0.66%.
The data came a day after testimony from Federal Reserve Vice Chairwoman Janet Yellen was seen as cementing the view that the bank will keep its USD85 billion-a-month asset purchase program in place until early next year.
Ms. Yellen said it was “imperative” that the Fed does everything in its power to ensure a robust recovery. She said the quantitative easing program would not continue indefinitely but the timescale for reducing it would be data dependent.
The comments came during a Senate confirmation hearing to take over from Ben Bernanke as head of the central bank in February.
The euro's gains were held in check after data on Thursday showed that the euro zone recovery slowed more than expected in the third quarter.
Euro zone gross domestic product expanded 0.1% in the three months to September, slowing from the 0.3% growth achieved in the second quarter when the euro zone exited a recession. Economist had forecast quarter-on-quarter growth of 0.2%.