The U.S. dollar strengthened against the other major currencies in European deals on Friday, as traders await U.S. durable goods orders data for July, due shortly.

Data from the Commerce Department is expected to show that U.S. durable goods orders may have risen by 0.4 percent in June, after falling 0.9 percent last month. Excluding transportation, durable goods orders are seen rising 0.5 percent, following a flat reading a month earlier.

The U.S. jobless claims fell to an 8-1/2-year low of 284,000 in the week ended July 19, data showed on Thursday. The figures were also down from the 308,000 claims forecast by economists.

The U.S. economy has been showing signs of recovery recently, which raised the prospectus of an early interest rate hike by the Federal Reserve. The U.S. interest rates may rise sooner than forecast "if the labor market continues to improve more quickly than anticipated," Federal Reserve Chair Janet Yellen said last week.

Traders focus on a slew of events next week, including the Federal Reserve's monetary policy meeting, U.S. gross domestic product data and jobs data, for a clear direction.

The greenback appreciated to 101.93 against the yen for the first time since July 7. This is higher by 0.1 percent from Thursday's closing quote of 101.79. If the greenback advances further, it may find resistance around the 102.5 zone.

Japan's consumer prices rose 3.6 percent on year in June, the Ministry of Internal Affairs and Communications said. That topped forecasts for 3.5 percent, also slowing from 3.7 percent in May.

The greenback spiked up to 0.9043 against the franc, a near 6-month high, from an early low of 0.9017. The next possible upside target for the greenback is seen around the 0.91 level. At yesterday's close, the pair was quoted at 0.9023.

Rebounding from an early low of 1.3475 against the European currency, the greenback firmed to 1.3440. On the upside, 1.34 is seen as the next possible resistance level for the greenback. The pair was valued at 1.3462 when it ended deals yesterday.

Germany's business confidence declined for a third successive month in July and at a faster-than-expected pace, survey results from the Ifo Institute showed.

The Ifo Business Climate Index fell to 108, which was worse than the 109.4 score forecast by economists. In June, the index had eased to a six-month low of 109.7.

The greenback came off from an early low of 1.6997 against the pound, climbing to a new 4-week high of 1.6960. The pound-greenback pair finished yesterday's trading at 1.6985. The greenback is likely to find resistance around the 1.69 region.

The U.K. economy expanded as expected in the second quarter underpinned by services and manufacturing, preliminary data from the Office for National Statistics showed.

Gross domestic product grew 0.8 percent sequentially in the second quarter, the same rate as seen in the first three months of the year.

The greenback hit a 9-day high of 1.0767 against the loonie, a 0.3 percent increase from an early low of 1.0737. Further gains may take the greenback to a resistance around the 1.08 zone. The pair closed Thursday's deals at 1.0743.

The greenback advanced to a 1-1/2-month high of 0.8539 against the NZ dollar, after declining to 0.8585 at 8:25 pm ET. Next likely key resistance level for the greenback may be eyed around the 0.85 region. The pair's yesterday's closing value was at 0.8570.

The greenback rose back against the aussie, remaining near an early 2-day high of 0.9401. The greenback may test resistance around the 0.935 area. The aussie-greenback pair was worth 0.9418 at yesterday's close.

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