The U.S. dollar extended its early slide against other major currencies in the Asian session on Friday, as traders' bet on the view that the Federal Reserve was nearing to pause its interest rate-hike cycle after data showed an unexpected decline in U.S. producer prices on Thursday.

Data from the Labor Department showed on Thursday, the producer price index fell by 0.5 percent in March following a revised unchanged reading in February. Economists had expected producer prices to come in unchanged compared to the 0.1 percent dip originally reported for the previous month.

The report also showed the annual rate of producer price growth slowed dramatically to 2.7 percent in March from 4.9 percent in February. Economists had expected the pace of growth to slow to 3.0 percent.

Separate data showed that first-time claims for U.S. unemployment benefits rose more than expected in the week ended April 8.

The report said initial jobless claims climbed to 239,000, an increase of 11,000 from the previous week's unrevised level of 228,000. Economists had expected jobless claims to rise to 232,000.

The U.S. dollar started falling against its major rivals after the poor economic data from the U.S. in the New York session on Thursday.

In the Asian session today, the U.S. dollar touched 1.1075 against the euro, its lowest level since April 2022. The pair was valued at 1.1046 at Thursday's close. The eur/usd pair may find its support around the 1.12 area.

The greenback touched 1.2546 against the pound, it lowest level since June 2022. At yesterday's close, the greenback was trading at 1.2522 against the pound. On the downside, 1.27 is seen as the next support level for the greenback.

Against the Canadian and the New Zealand dollars, the greenback dropped to a 2-month low of 1.3317 and an 8-day low of 0.6315 from yesterday's closing quotes of 1.3336 and 0.6295, respectively. The next possible support level for the greenback is seen around 1.32 against the loonie and 0.65 against the kiwi.

Against the yen, the Swiss franc and the Australian dollar, the greenback edged down to 132.26, 0.8874 and 0.6794 from yesterday's closing quotes of 132.56, 0.8891 and 0.6781, respectively. If the greenback extends its downtrend, it is likely to find support around 128.00 against the yen, 0.87 against the franc and 0.70 against the aussie.

Looking ahead, Switzerland's producer and import prices for March is due to be released at 2:30 am ET.

Canada final manufacturing sales data for February, U.S. retail sales data, export and import prices, industrial production, all for March, U.S. University of Michigan's preliminary consumer sentiment index for April and U.S. Baker Hughes rig count data are due to be released in the New York session.

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