The U.S. dollar spiked up against its key counterparts during the European morning session on Friday, as U.S. Treasury yields rose after President Joe Biden's signing of a COVID-19 relief package into law, boosting expectations for a faster growth and inflation.

Biden signed the $1.9 trillion stimulus package on Thursday afternoon, marking a major legislative victory since assuming office in January.

The plan provides direct payments of up to $1,400, extends $300 per week jobless benefits and grant funds for vaccine distribution.

In his signing ceremony, Biden pledged aggressive action to speed vaccinations and move the country closer to normality by July 4.

U.S. bond yields firmed, with the benchmark 10-year Treasury yields rising to 1.59 percent.

The U.S. producer price index and University of Michigan's preliminary consumer sentiment index are due later in the day.

The greenback reversed from its early lows of 0.9231 against the franc and 1.1989 against the euro, gaining to 0.9305 and 1.1928, respectively. The next likely resistance for the greenback is seen around 0.95 against the franc and 1.16 against the euro.

After falling to 108.49 against the yen and 0.7233 against the kiwi in prior deals, the greenback advanced to a 3-day high of 109.17 and a 2-day high of 0.7179, respectively. The greenback may face resistance around 112.00 against the yen and 0.70 against the kiwi.

The greenback edged up to 1.3931 against the pound, from an 8-day low of 1.4005 set at 8:00 pm ET. Next immediate resistance for the dollar is seen near the 1.37 level.

The greenback climbed to 1.2572 against the loonie and 0.7741 against the aussie, coming off from its early low of 1.2524 and an 8-day low of 0.7801, respectively. On the upside, 1.29 and 0.74 are possibly seen as the next resistance levels for the greenback against the loonie and the aussie, respectively.

Looking ahead, Eurozone industrial production for January is due in the European session.

Canada jobs data and U.S. PPI for February and University of Michigan's preliminary U.S. consumer sentiment index for March will be featured in the New York session.

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