During early Asian deals on Friday, the dollar showed weakness against its major counterparts as a surge in stock markets reduced demand for the safety of the US currency.

After trending higher in recent sessions, stocks saw some further upside over the course of the trading day on Thursday. The major averages all moved firmly into positive territory, ending the session at their best closing levels in over a month.

While the Dow rose nearly 175 points on the day, the tech-heavy Nasdaq ended the session up nearly 60 points to climb above the unchanged line for the year.

In economic news, he U.S. Labor Department announced yesterday that initial jobless claims rose to 652,000 for the week ended March 21st, compared to the previous week's level of 644,000. Analysts had expected the figure to come in at a level of 650,000.

At the same time, the Commerce Department released its final revision Gross Domestic Product for the fourth quarter.

The report showed that GDP fell by a revised 6.3 percent in the fourth quarter compared to the preliminary estimate of a 6.2 percent decrease. Economists had been expecting GDP to be revised to show a somewhat steeper 6.6 percent contraction.

Against the European currency, the US dollar edged down during early Asian deals on Friday. At 11:00 pm ET, the dollar slipped to 1.3575 against the euro, compared to 1.3528 hit late New York Thursday. The next downside target level for the US currency is seen around 1.373.

The US dollar that closed Thursday's North American session at 1.4426 against the British pound declined to 1.4491 at 11:00 pm ET. On the downside, 1.491 is seen as the next target level for dollar.

Against the Swiss franc, the US currency traded down during Friday's early Asian deals. At 11:05 pm ET, the dollar-franc pair touched 1.1235, down from Thursday's closing value of 1.1273. If the pair falls further, 1.112 is seen as the next target level.

The greenback that closed Thursday's New York deals at 98.73 versus the Japanese yen declined to 98.24 at 8:45 pm ET. The dollar-yen pair is currently trading at 98.37 with 96.9 seen as the next target level.

A government report said that consumer prices in Japan posted little or no change for the year to February. The reported said that its core consumer price index was unchanged in February from one year earlier, while the overall CPI was down 0.1 percent on year.

The data showed overall inflation was down 0.3 percent compared to one month earlier.

Another report said that retail sales in Japan plummeted by 5.8 percent in February when compared to a year earlier. The decline was the sharpest in 7 years and the 5th straight month of lower retail sales.

The German January import price index, French and the UK final Q4 GDP, Italian and the Euro-zone industrial orders are scheduled for release in the upcoming session.

Across the Atlantic, the Bureau of Economic Analysis is due to release its personal income & outlays report for February. Economists estimate the report, which is due out at 8:30 AM ET, to show that personal income fell 0.1% during the month. On the other hand, personal spending is expected to have risen 0.3% in the month.

The final reading of the University of Michigan's consumer sentiment index for March is due to be released at 10 AM ET. The report is expected to show that the consumer sentiment index edge down to 56 from the mid-month reading of 56.6.

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