The U.S. dollar was higher against its major counterparts in the European session on Friday, as investors awaited the release of key U.S. inflation data later in the day that could influence the Fed's monetary policy path.

Comments from three Fed officials suggested that more policy tightening was needed to combat persistent inflation.

While Boston Fed President Susan Collins expects one more quarter-point rate increase, Richmond Fed President Thomas Barkin said he remains undecided on how to adjust rates at the May meeting.

Minneapolis Fed President Neel Kashkari said the Fed needs to focus on lowering inflation back to 2 percent and that it's not yet fully clear what impact the collapse of Silicon Valley Bank will have on the economy.

According to the CME's FedWatch tool, investors are now pricing in a 53.2 percent chance of a 25 basis point increase at its next meeting in early May and a 46.8 percent probability of no-change.

The greenback rose to 0.9177 against the franc and 1.0872 against the euro, from its prior lows of 0.9123 and 1.0925, respectively. The currency is seen facing resistance around 0.93 against the franc and 1.05 against the euro.

The greenback was up against the yen, at a 2-week high of 133.59. On the upside, 137.00 is possibly seen as its next resistance level.

The greenback climbed to 0.6670 against the aussie, 0.6247 against the kiwi and 1.3564 against the loonie, after falling to more than a 2-month low of 1.2423 and 1-1/2-month lows of 0.6297 and 1.3507, respectively in early deals. The greenback may find resistance around 0.65 against the aussie, 0.60 against the kiwi and 1.38 against the loonie.

The greenback appreciated to 1.2353 against the pound, from an early more than 2-month low of 1.2423. Next near term resistance for the currency is likely seen around the 1.05 level.

Looking ahead, Canada GDP data for January, University of Michigan's final consumer sentiment index for March and U.S. personal income and spending data for February will be released in the New York session.

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