The dollar fell broadly on Friday in a bout of positive risk sentiment following upbeat big tech earnings on Wall Street, while traders awaited U.S. jobs data due later in the day to gauge how soon the Federal Reserve could begin easing rates.

The closely watched nonfarm payrolls report later on Friday comes on the heels of the Fed's latest policy meeting where rates were kept steady as expected, though Chair Jerome Powell pushed back against market expectations of rate cuts in March.

Ahead of the release, the greenback dipped against a basket of currencies , extending a 0.5% fall in the previous session.

The dollar index was last at 103.02 and on track for its first weekly decline for the year.

The risk-on mood helped the Aussie tack on 0.17% to last trade at $0.6583, though it was on track to end the week only about 0.2% higher, as its gains were capped by a sharp slowdown in domestic inflation.

The New Zealand dollar rose 0.07% to $0.6149 and was on track for a weekly rise of nearly 1%, its best performance in over a month.

In other currencies, the yen gained 0.1% to last stand at 146.29 per dollar. It was poised for a weekly gain of nearly 1.3%, its best week in over a month.

Elsewhere, sterling rose 0.09% to $1.2754.

The Bank of England (BoE) kept interest rates at a nearly 16-year high on Thursday but opened up the possibility of cutting them as inflation falls.

The euro edged 0.07% higher to $1.0879 and was eyeing a weekly gain of more than 0.25%.

Data on Thursday showed euro zone inflation eased as expected last month but underlying price pressures fell less than forecast, likely boosting the European Central Bank's argument that rate cuts should not be rushed.

Source: Reuters