The dollar briefly extended declines against the yen on Friday after U.S. government data showed gross domestic economic growth was slower than previously estimated in the first quarter as estimates of business and consumer spending were cut.
A bit of a disappointment with this report, said said Matthew Strauss, senior currency strategist, RBC Capital Markets in Toronto. It's on the softer side of expectations and with the recent slew of soft data from the U.S., it actually support this week's FOMC cautious statement. It also support a risk-off sentiment in the forex markets.
The dollar fell to 89.38 yen JPY= after the data from around 89.48 prior to the release of the data, but bounced back to trade at 89.46, down 0.1 percent on the day.
The euro was last down 0.3 percent at $1.2290 EUR= from $1.2288 just before the release of the data. (Reporting by Nick Olivari and Vivianne Rodrigues, Editing by W Simon )