The dollar held firm near a 10-day high on Friday boosted by expectations U.S. inflation will pick up, although concerns about an escalation in U.S.-China trade tensions limited the greenback's gains.

The dollar index against a basket of major currencies held gains made since early this week on Friday, changing hands at 94.867.

It had risen as high as 94.941 in late trade the previous day, its highest since July 3, before bouncing back slightly as worries about deepening trade friction between Washington and Beijing capped gains.

The greenback was supported in part by a report of U.S. consumer prices on Thursday which showed a steady buildup of inflation pressure that could keep the Federal Reserve on a path of gradual interest rate increases.

USD/JPY hit a fresh six-month high of 112.71 early on Friday, gaining 0.2 percent. It had broken through the 112-yen barrier earlier in the week for the first time since Jan. 10.

EUR/USD remained sluggish, trading at 1.1665, moving further off a 3-1/2 week high of 1.17905 touched on Monday.