The greenback made headway against major currencies on Friday as markets reacted to data showing China, the world's second largest economy, grew faster than expected forecast in the final quarter of 2012.

Data out Friday showed Chinese economic growth rose to 7.9% in the three months ending in December as a steady economic recovery continues. The figure is up from 7.4% the previous quarter and ahead of expectations for 7.8% growth during the quarter.

The dollar index, which measures the US currency against a basket of six others, traded at 79.994 from 79.691 the session before.

The euro dropped below $1.33 before later recovering to around $1.3318 compared to $1.3376 the previous session.

Meanwhile the yen slumped to a 31-month low against the dollar on Friday on heightened expectations that the Bank of Japan will introduce aggressive monetary policy action at its upcoming meeting.

The euro changed hands at ¥120.01 from ¥119.43 before while the dollar advanced to ¥90.09 versus ¥89.98 on Thursday.

Sterling fell to $1.5872 from $1.6003 before as markets mulled a weaker than expected UK retails sales report.



CJ

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