USD rose against most of its major counterparts in the European session on Friday, as investors continued to digest Thursday's comments by the U.S. Federal Reserve Chair Jerome Powell while awaiting the U.S. jobs report for February.

While speaking at a conference hosted by The Wall Street Journal, the Fed's Chair Powell said the recent spike in U.S. Treasury yields caught his attention but added that the U.S. central bank "will be patient" before changing policy even if they see “transitory increases in inflation". In other words, the Fed is not going to intervene in the bond market, which has been pricing in inflation through higher Treasury yields. Some investors had expected Powell would signal that Fed could adjust its asset purchase program. The 10-year Treasury yield, which was little changed prior to Powell's remarks, surged by eight basis points to 1.55%. At the moment, the benchmark rate is trading at 1.574%, up by 1 basis point. 

The expectations of further increases in U.S. yields lifted the U.S. Dollar Index (DXY), which measures the U.S. currency's value relative to a basket of foreign currencies, to 92.03 early Friday, its highest level since late November 2020. Currently, the DXY is at 91.89 (+0.28%).

Markets are now awaiting a crucial U.S. jobs report for February, set to be released at 13:30 GMT. Economists forecast the U.S. to have added 182,000 last month, higher than January's disappointing gain of 49,000. Meanwhile, the unemployment rate is seen to remain unchanged at 6.3%.