The dollar was on the front foot on Friday, as solid U.S. economic data reinforced the need for the Federal Reserve to stay on its aggressive monetary policy tightening path and further raised the odds of higher-for-longer rates.

The greenback rose broadly overnight, though was hobbled against the Japanese yen, which has continued to draw solid demand after the Bank of Japan's surprise policy tweak earlier in the week.

Sterling was just a touch higher at $1.2038 having slumped to a three-week low of $1.1993 overnight.

A second report also on the same day confirmed that the U.S. economy rebounded in the third quarter after contracting in the first half of the year, and at a pace faster than previously estimated.

The number of Americans filing new claims for unemployment benefits increased less than expected last week, pointing to a still-tight labour market, data released on Thursday showed.

A second report also on the same day confirmed that the U.S. economy rebounded in the third quarter after contracting in the first half of the year, and at a pace faster than previously estimated.