USD dipped against most of its major rivals in the European session on Friday as investors cautiously awaited the U.S. PCE inflation data set to be released today at 13:30 GMT.

The U.S. Dollar Index (DXY), measuring the U.S. currency's value relative to a basket of foreign currencies, edged down 0.07% to 91.75.

Economists forecast that the core personal consumption expenditures (PCE) price index, the Federal Reserve's preferred inflation gauge, rose 3.4% in May, its fastest pace in more than three decades. There are fears that hotter-than-expected inflation could push the Fed’s policymakers to change their timetable for interest rate hikes, which at present aren't penciled in until at least 2023, or to begin tapering its asset purchases soon.

Meanwhile, the overall market sentiment remains positive with optimism around the U.S. Senate group agreement on a $1.2 trillion infrastructure bill underpinning investors’ appetite for riskier currencies.