The U.S. dollar cut its losses against the euro, extended gains against the yen and reached an 11-year high against the Norwegian crown on plunging oil prices and stronger-than-expected U.S. economic data on Friday.
Oil prices fell to 5-1/2 year lows on concerns of a global glut, dampening inflation expectations. However, lower energy costs also increase the cash consumers have to spend heading into year-end holidays.
U.S. consumer sentiment rose to an eight-year high in December, above economists' forecasts, according to the Thomson Reuters/University of Michigan survey. The gain was fueled by improved prospects for jobs and wages, while inflation expectations rose as well, bolstering the case for the U.S.