The dollar rose on Friday against an index of its largest rival currencies after U.S. economic data on Thursday raised expectations that the Federal Reserve would take a pause from its string of interest rate cuts.

The dollar rose to 1.5470 from $1.5475 after rising as high as $1.5430 on Thursday at 10:03 a.m. in Tokyo. The U.S. currency was little changed at 104.62. The euro rose to 161.84 from 161.60 yen.

Manufacturing fell less than expected in April, according to a report from the Institute of Supply management. The index was at a reading of 48.6 in April. Analysts had expected a reading of 48, and markets reacted positively. Figures below 50 indicate contraction.

Meanwhile, a separate report indicated that consumer spending was higher than expected in March, as people paid higher prices for food and gasoline.

The Commerce department said spending grew 0.4 percent, compared to a 0.1 percent increase a month earlier. Not including inflation, spending grew just 0.1 percent.

A U.S. payrolls report due later today is expected to show that the U.S. economy lost 80,000 jobs in March, raising the unemployment rate to 5.2 percent from 5.1 percent according to a survey of economists by Reuters.

The U.S. Dollar Index which measures the dollar against a basket of the six highly traded currencies was at 73.207 after reaching 73.393 on Thursday.

Inflation