By Anora Mahmudova, MarketWatch , Hiroyuki Kachi

Greenback still on track for large weekly decline vs. the Japanese currency

The U.S. dollar firmed against the euro and yen Friday after better-than-expected retail sales suggested consumer spending -- the biggest driver of the economy -- was stronger than expected in January.

The ICE Dollar Index , a measure of the dollar against a basket of major currencies, was up 0.4% at 95.97.

The dollar rose to a session-high against the yen (http://www.marketwatch.com/story/retail-sales-increase-02-in-january-2016-02-12)after official data showed retail sales rose 0.2% in both January and December after an upward revision to December's initially-weak reading. Though it has trimmed its rise after a weaker-than-expected read on February consumer sentiment (http://www.marketwatch.com/story/consumer-sentiment-weakens-in-february-university-of-michigan-says-2016-02-12).

"Retail sales were better than expected, but still not great. The number is in line with the idea that the economy is still growing at a relatively healthy clip and supports the Federal Reserve's notion of gradual normalization," said Omer Esiner, chief market analyst at Commonwealth Foreign Exchange.

The greenback rose to Yen112.66 in recent trade, compared with Yen112.37 late Thursday in New York.

The euro traded at $1.1261, compared with $1.1326 Thursday. Despite Friday's uptick, the greenback is on track to log weekly declines against both rivals.

Read: The Dow's downtrend is now official (http://www.marketwatch.com/story/the-dows-downtrend-is-now-official-2016-02-11)

The dollar has weakened against both the euro and yen since the beginning of the year as market turmoil led global investors to perceived havens like the Japanese currency and U.S. Treasurys, as continued oil-price declines and a sharp selloff in global stocks have deepened the mood of risk aversion. The euro has also benefited because of the eurozone's growing current-account surplus, analysts have said.

It continued to weaken even after the Bank of Japan decided to impose negative rates for the first time, a decision analysts said would typically cause the currency to weaken.

Read:Here are five signs we might already be in a bear market (http://www.marketwatch.com/story/here-are-5-signs-we-might-already-be-in-a-bear-market-2016-02-11)

Worries about a strong yen drove the Nikkei Stock Average (http://www.marketwatch.com/story/japan-stocks-plunge-to-lowest-point-in-more-than-a-year-2016-02-11) to levels not seen since October 2014. The benchmark index closed down 4.8%, falling for the third straight session.

Comments from Japanese Finance Minister Taro Aso on Friday also helped weigh on the yen, as the minister warned investors (http://www.wsj.com/articles/japans-aso-warns-investors-over-yens-surge-1455239376) about the surging yen, saying the government will "act appropriately" in the currency markets.

(END) Dow Jones Newswires

February 12, 2016 10:31 ET (15:31 GMT)