The greenback rose against the Japanese yen and pared gains versus other major currencies on Friday with most centres closed for the Good Friday holiday. Many traders had already squared positions on Thursday ahead of the long Easter weekend.

Dollar moved higher versus the yen from 99.00 to 99.74 and also strengthened slightly against the Swiss franc (from 1.0050 to 1.0102), a day after the greenback staged a rally on short-covering and also on the back of a sharp fall in gold and oil prices.

The single currency held above Thursday's low at 1.5396 and recovered to 1.5473, however, euro has already fallen about 3% from Monday's record high. The Fed's emergency discount rate cut and implementation of a new discount lending facility on Sunday evening (U.S. time) was followed by a 75 basis-point cut in the Fed funds rate and these measures spurred traders to buy back the dollar.

The British pound traded narrowly inside a range of 1.9825-1.9860 after having fallen to 1.9735 the day before on speculation that the Bank of England may cut interest rates at its next meeting, following the release of the MPC meeting minutes earlier this week which showed two of the nine members had voted for a rate cut.

Australian, New Zealand and Canadian dollar recovered some of their losses against the U.S. unit on Friday, after falling sharply on Thursday in line with the selloff in commodity prices. The Australian dollar traded at 0.9020 with the New Zealand and Canadian dollar recovering to 0.7930 and 1.0240 respectively.