The dollar held on to steep gains on Friday after better-than-forecast U.S. data dampened expectations for further easing by the Federal Reserve this year.

The dollar index , which measures the greenback against major peers, was poised for its biggest weekly advance in two months after figures on U.S. economic growth, unemployment claims, durable goods and wholesale inventories all beat expectations on Thursday.

The yen traded at an eight-week low following a new raft of tariffs announced by U.S. President Donald Trump. Attention now turns to the release of U.S. consumer spending data later on Friday for signals of how urgently the economy needs additional stimulus from the Fed.

"Markets are reading through to this, and you can see a few basis points pared off of the lower rate forecasts," said Gavin Friend, senior markets strategist at National Australia Bank. "I think when you do see numbers like we saw on Thursday, you say, well, where's the fire?"

The dollar index edged 0.1% lower to 98.37, trimming its 0.6% gain in the previous session. It is on course for a 0.8% climb over the past five days, the steepest since the week ending August 1.

The greenback rose 0.1% to 149.68 yen after nearly breaking through the 150 mark for the first time since August 1. The euro added 0.1% to $1.1680 .

Source: Reuters