The U.S. dollar slipped lower on Friday, creeping away from near a two-month high versus the yen hit in the prior session and plummeted against the euro, following weaker-than-expected U.S. economic data. Sluggish inflation data snd weaker than expected retail sales data raised doubts about whether the Federal Reserve will assume a hawkish tone through the end of the year.

Core CPI rose 1.9 percent year-on-year in April, against consensus for 2.0 percent, which is the smallest increment since October 2015.

In addition, the Commerce Department said advance retail sales rose 0.4 percent last month. While March saw an upwardly revised 0.1 percent gain, the April figure disappointed expectations for an increase of 0.6 percent.

EUR/USD rose more than 0.6 percent to a session high of 1.0928 after the single currency had dropped to a more than two-week low on Thursday of 1.0838.

USD/JPY also fell as much as 0.6 percent to a session low of 113.21 after hitting a roughly two-month high of 114.36 yen on Thursday.