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The U.S. dollar was higher against its major counterparts in the European session on Friday, as the U.S. economy grew more than expected in the first quarter, supporting investors' optimism for sustained U.S. economic expansion.

Data from the Commerce Department showed that real gross domestic product climbed by 2.3 percent in the first quarter compared to the 2.9 percent jump in the fourth quarter.

Economists had expected GDP to increase by about 2.0 percent.

Investors await the University of Michigan's revised report on consumer sentiment in the month of April.

The consumer sentiment index is expected to be upwardly revised to 98.0 from the preliminary reading of 97.8, although that would still be down from 101.4 in March.

The greenback showed mixed trading against its major counterparts in the Asian session. While it held steady against the yen and the euro, it rose against the franc. Against the pound, it dropped.

The greenback spiked up to 0.7039 against the kiwi, a level unseen since December 27. The greenback is likely to find resistance around the 0.69 level.

The greenback climbed back to 0.9919 against the Swiss franc, heading to pierce its early 4-1/2-month peak of 0.9921. Next key resistance for the greenback is likely seen around the 1.01 level.

The greenback extended rally to a 2-1/2-month high of 109.54 against the Japanese yen, from a low of 109.15 hit at 10:15 pm ET. The greenback is seen challenging resistance around the 111.00 area.

The Bank of Japan kept its monetary stimulus unchanged as widely expected.

Governor Haruhiko Kuroda and his board members decided by an 8-1 majority vote to hold its target of raising the amount of outstanding JGB holdings at an annual pace of about JPY 80 trillion.

The greenback that closed Thursday's trading at 1.2103 against the euro moved up to a 3-1/2-month high of 1.2056. The greenback is poised to challenge resistance around the 1.19 mark.

Survey data from European Commission showed that Eurozone economic sentiment remained stable in April.

The economic sentiment index held steady at 112.7 in April. The score was forecast to drop to 112.0.

The greenback remained firm near a 2-month peak of 1.3748 against the pound, compared to 1.3913 hit late New York Thursday. If the greenback rises further, it may find resistance around the 1.35 area.

Data from the Office for National Statistics showed that the U.K. economy expanded at the slowest pace in more than five years in the first quarter.

Gross domestic product grew only 0.1 percent in the first quarter, the weakest since the fourth quarter of 2012. GDP was expected to rise 0.3 percent.

On the flip side, the greenback retreated to 1.2861 against the loonie and 0.7564 against the aussie, from its early more than a 3-week high of 1.2900 and a 4-1/2-month high of 0.7532, respectively. The next possible support for the greenback is seen around 1.26 against the loonie and 0.78 against the aussie.

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