The greenback rebounded broadly on Friday on short covering, ended its two straight days losses after Fed announced on Wednesday to buy up to $1.5 trillion of government and mortgage-backed debt in a bid to cut interest rates and kick-start lending, however, it still notched its biggest weekly plunge against a basket of currencies since the 1985 Plaza Accord (when major economies agreed to a formal depreciation of the U.S. dollar). In late New York trading, the U.S. dollar index rose 0.78 percent to 83.72 but it still posted a 4 percent drop over the week.

On Friday, data showing eurozone industrial output fell in January for a fifth straight month underscored the economy’s woes and pared some of euro’s recent gains. The single currency surged to a two-month high of 1.3739 on Thursday but traded lower by 0.7 percent to $1.3576 in late Friday’s New York session, posted a 5 percent weekly gain against the dollar.

In other currencies, the British pound shed 0.4 percent versus the dollar and last trading at around 1.4470 level, after rallying to a weekly high of 1.4598. On the other hand, the greenback rose back from Thursday’s lows of 1.1158 versus the Swiss franc and 93.55 against the Japanese yen, to as high as 1.1299 and 96.27 respectively. Over the week, the dollar dropped by 3 percent versus sterling, 5 percent against the Swiss franc and 2.2 percent versus yen.

Economic data due out in the upcoming week include Japan BOJ report, eurozone trade balance, Canada leading indicators and U.S. existing home sales on Monday, German and eurozone manufacturing PMI, U.K. CPI data and RPI, and U.S. house price index on Tuesday, U.K. CBI distribution trade and U.S. durable good orders on Wednesday, German Gfk index, U.K. retail sales, and U.S. GDP, personal consumption and Jobless claims on Thursday, and, Japan Tokyo CPI and National CPI, U.K. GDP, and U.S. PCE data on Friday.