The dollar fell against the euro on Friday on weaker than expected U.S. economic data but gained against the Japanese yen after Bank of Japan (BOJ) governor Kazuo Ueda said it was too soon to declare victory on inflation.

In cryptocurrencies, bitcoin held just below a more than two-year high reached on Wednesday.

U.S. manufacturing slumped further in February, with a measure of factory employment dropping to a seven-month low amid declining new orders. Construction spending, which had been expected to increase, also fell in January.

Oil prices rose 2% on Friday and posted weekly gains as traders awaited an OPEC+ decision on supply agreements for the second quarter while also weighing fresh U.S., European and Chinese economic data.

Brent futures for May settled $1.64 higher, or 2%, at $83.55 a barrel. The April Brent futures contract expired on Feb. 29 at $83.62 a barrel.

Bitcoin (BTC) has surged past the $60,000 mark for the first time since November 2021, driven by a continued influx of exchange-traded fund (ETF) investments. Over the past two days, ETFs have seen a combined net inflow of $1.1 billion, with demand from Bitcoin ETFs outpacing daily Bitcoin production by miners by approximately tenfold.

Amid this upward trajectory, analysts at Bernstein highlighted an interesting trend – the underperformance of Bitcoin mining stocks compared to cryptocurrency’s performance.

The dollar rose on Thursday in choppy trading and was on track for its second consecutive monthly gain against the euro and yen, overcoming an earlier dip after data showed that U.S. inflation was as expected in January.

The yen gained after a policymaker hinted at the need to exit ultra-easy policies, while bitcoin held near a more than two-year high reached on Wednesday.

Global oil demand will grow by 1.9 million barrels per day (bpd) this year, according to a prediction by energy research company Wood Mackenzie, a forecast close to the Organisation of the Petroleum Exporting Countries' (OPEC) estimate for 2024.

In remarks shared with delegates at a Wood Mac briefing on Wednesday during the Energy Institute conference in London, the firm's vice president of oils research Alan Gelder predicted, like most other forecasters, that the bulk of that rise would come from China and India.

Oil prices gained on Monday as European diesel demand, constrained by Russian sanctions and shipping disruptions, pulled prices higher in a market jittery with U.S. refinery output limited by planned overhauls, analysts said.

Brent crude futures settled with a gain of 91 cents, or 1.11%, at $82.53 a barrel. U.S. West Texas Intermediate crude futures (WTI) finished up $1.09, or 1.43%, at $77.58.

The dollar was mostly lower on Monday ahead of U.S. durable goods orders and an inflation reading this week that could provide more information on how soon the Federal Reserve may begin cutting interest rates.

The dollar index, a measure of the greenback against a basket of currencies, was last down 0.2% at 103.78 - though the U.S. currency strengthened 0.1% to 150.71 against the Japanese yen.

Gold prices retreated in Asian trade on Monday, remaining well within a recent trading range as anxiety over higher-for-longer U.S. rates grew in anticipation of key economic readings. 

The yellow metal failed to make any major price headway in recent weeks as a string of Federal Reserve officials warned that the bank was in no hurry to cut interest rates.

The U.S. dollar index was on track for its first weekly fall in 2024 on Friday as investors took a breather from buying the currency following an almost two-month rally built on expectations that the Federal Reserve will begin cutting rates later than previously expected.

Investors have pushed back expectations for the first Fed rate cut to June, from May, and dramatically reduced how far they see the U.S. central bank cutting its benchmark rate. Fed officials have projected three 25 basis point cuts this year, while markets had priced for as many as seven.

Oil futures settled higher on Thursday as hostilities continued in the Red Sea with Iran-aligned Houthis stepping up attacks near Yemen, but a large build in U.S. crude inventories weighed on gains.

Brent crude futures settled higher, up 64 cents or 0.77% at $83.67 a barrel. U.S. West Texas Intermediate crude futures settled higher, up 70 cents or 0.9% at $78.61 a barrel.