The Swiss franc climbed against its major opponents during the European session on Friday amid risk aversion, as investors fret about a spike in bond yields and stretched valuation.

European shares fell following a sell-off in Asia, led by the overnight surge in yields amid inflation worries.

The benchmark 10-year Treasury yield soared above 1.6 percent after soft demand at an auction of $62 billion of 7-year Treasury note.

Investors worry that higher inflation could force the central banks to pare back ultra-loose policies, despite their dovish rhetoric.

Data from the State Secretariat for Economic Affairs showed that Switzerland's economic growth eased sharply in the fourth quarter as the restrictions imposed to contain the coronavirus pandemic weighed heavily on the service sector.

Gross domestic product gained 0.3 percent sequentially, much slower than the 7.6 percent expansion seen in the third quarter. GDP was forecast to climb 0.1 percent.

The franc moved up to a 3-day high of 1.0956 against the euro and a 4-day high of 1.2576 against the pound, up from yesterday's closing values of 1.1012 and 1.2663, respectively. The franc is seen finding resistance around 1.08 against the euro and 1.24 against the pound.

The franc reached as high as 0.9027 against the greenback, setting a 3-day high. The franc is likely to face resistance around the 0.88 region, if it gains again.

The Swiss currency touched a 4-day high of 117.79 against the yen, compared to yesterday's closing quote of 117.26. Next key resistance for the franc is likely seen around the 119.5 level.

Data from the Ministry of Land, Infrastructure, Transport and Tourism showed that Japan's housing starts continued to decline in January, albeit at a softer pace.

Housing starts declined 3.1 percent year-on-year in January, following 9.0 percent fall in December. Economists had expected decrease of 2.5 percent.

Looking ahead, Canada industrial product price index, U.S. personal income and spending data, wholesale inventories and advance goods trade balance, all for January, and University of Michigan's final consumer sentiment index for February will be featured in the New York session.