Dollar pushes higher vs. rivals ahead of G7 talks

The U.S. dollar pushed higher against the other major currencies on Friday, as Thursday's strong U.S. initial jobless claims data continued to support demand for the greenback, while markets eyed a meeting of finance ministers and central bank heads from the Group of Seven nations. 

During U.S. morning trade, the dollar was higher against the euro, withEUR/USD sliding 0.53% to 1.2972. 

The greenback remained broadly supported after the Department of Labor on Thursday said the number of individuals filing for unemployment assistance in the U.S. last week fell by 4,000 to a seasonally adjusted 323,000, compared to expectations for an increase of 8,000 to 335,000.

The data, coming after last week’s stronger than expected U.S. nonfarm payrolls report, eased concerns over a slowdown in the labor market. 

Meanwhile, the euro weakened after official data showed that industrial production in Italy dropped 0.8% in March, more than the expected 0.2% decline, after a 0.9% fall the previous month. 

Earlier Friday, official data showed that Germany trade surplus narrowed less-than-expected in March, falling to EUR17.6 from a surplus of EUR17.7 billion the previous month. 

Analysts had expected the trade surplus to narrow to EUR16.5 billion in March. 

The greenback was also higher against the pound, with GBP/USDretreating 0.61% to 1.5355. 

Official data earlier showed that the U.K. trade deficit narrowed less-than-expected in March, easing up to GBP9.1 billion from a deficit of GBP9.2 billion the previous month. 

Analysts had expected the trade deficit to narrow to GBP9.0 billion in March. 

Elsewhere, the greenback was higher against the yen and the Swiss franc, with USD/JPY jumping 1.15% to trade at 101.77, and withUSD/CHF rallying 0.93% to 0.9570. 

In Japan, official data showed that Japan's current account swung into a surplus of JPY0.34 trillion in Japan, from a deficit of JPY0.03 trillion the previous month. 

Analysts had expected the current account to rise to a surplus of JPY0.48 trillion in March. 

The greenback was higher against its Canadian, Australian and New Zealand counterparts, with USD/CAD climbing 0.52% to 1.0119,AUD/USD tumbling 0.99% to 0.9991 and NZD/USD plummeting 1.38% to 0.8275. 

Earlier Friday, the minutes of the Reserve Bank of Australia's latest policy meeting showed that policymakers lowered its inflation forecast following an interest rate cut this week. 

On May 7, the RBA lowered its benchmark interest rate to a record 2.75%. 

The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was up 0.61% to 83.28. 

Later in the day, the U.S. was to release data on the federal budget balance. 

In addition, G7 finance ministers and central bank heads were to hold the first day of a two day summit meeting.