Dollar strengthened for the second day, reaching one-month high versus the yen, as demand on safety assets increased after Egypt's President Hosni Mubarak refused to step down, just giving some of his authorities to his deputy, which was unsatisfying for protesters who called for his immediate resignation, thereby underscoring concerns that upheavals in Egypt are far from over.

The dollar also took advantage of the better-than-estimated jobless claims data released on Thursday which added to confidence that employment market is improving after the drop in unemployment to 9.0%.

Later in the day, University of Michigan confidence is predicted to rise to 75.0 in February from 74.2 last month.

The dollar index, which tracks the dollar movements versus a basket of major currencies, is currently trading at 78.60 after touching a high of 78.69 and a low of 78.11.

On the other hand, the euro/dollar pair declined as the euro retreated ahead of Merkel's meeting with Axel Weber to know hid final decision regarding having the Presidency of the ECB after Jean-Claude Trichet.

The pair is currently trading at 1.3530 after falling to a low of 1.3506, where it found support at 1.3500 levels, while the day's high was recorded at 1.3620.

The trading range for today is among the key support at 1.3365 and the key resistance at 1.3715.

Moving to the royal pair, the pound pulled the pair to the downside on worries regarding high inflation after data released today showing that UK PPI for January rose twice expectations, to add to concerns, before the release of CPI for January next week, where expectations refer that the rate will climb to 4.1% from 3.7%.

The pair's breach of 1.60 strong support level pushed it down to a low of 1.5961 before it rebounded to 1.5995, while the days' high was at 1.6112.

The trading range for today is among the key support at 1.5965 and the key resistance at 1.6300.

Finally, the dollar/yen pair resumed its upside direction on the daily basis to settle at 83.56, after hitting a high of 83.67 and a low of 83.19.

The trading range for today is among the key support at 81.05 and the key resistance at 84.25.