The dollar headed for its largest weekly fall versus the euro in two-and-a-half months on Friday as signs of cooling inflation and a softening U.S. economy raised the prospect of rate cuts.

Indonesia posted a slightly bigger-than-expected trade surplus in April of $3.56 billion, as the country saw smaller-than-estimated imports, statistics bureau data showed on Wednesday.

The Japanese economy shrank more than expected in the first quarter of 2024, hit chiefly by a slowdown in consumer spending amid sticky inflation and sluggish wages, while capital spending also slowed. 

Japan's economy contracted in the first quarter, squeezed by weaker private consumption and external demand and throwing a fresh challenge to policymakers as the central bank looks to lift interest rates away from near-zero levels.

U.S. inflation slowed marginally in April, while the gauge of core prices closely watched by the Federal Reserve decelerated slightly but remained stubbornly elevated.