By Shinichi Saoshiro
TOKYO (Reuters) - The dollar inched down early on Monday, nudged off a one-week high against a basket of currencies after Treasury yields declined on data showing the world's largest economy grew at a slower-than-expected pace.
The U.S. currency was down 0.35 percent at 114.660 yen <jpy=>after rising on Friday to 115.380, its highest since Jan. 20.
The euro added to Friday's modest gains and was last 0.2 percent higher at $1.0715 <eur=>.
Data released on Friday showed U.S. gross domestic product grew at a 1.9 percent annualized pace in the final three months of 2016, compared with a 3.5 percent rate in the third quarter. Analysts polled by Reuters had forecast a GDP growth pace of 2.2 percent.
"The correlation between the dollar and U.S. yields still remains relatively strong, and it is being weighed down after the lackluster GDP release," said Junichi Ishikawa, senior FX strategist at IG Securities in Tokyo.
"Some of the dollar's decline against the yen is also technical with the currency running into resistance on the charts. Concerns towards Trump's trade policies is another factor weighing on the dollar."
The dollar has been volatile since Donald Trump's inauguration on Jan. 20. Market focus has been caught between Trump's protectionist slant, seen as negative for the greenback, and hopes for fiscal stimulus under the new president, considered a positive for the currency.
The against a basket of major currencies fell to a seven-week low of 99.793 () on Thursday before clawing back to a one-week high of 100.820 a day later. The index was down 0.2 percent at 100.350 on Monday.
The pound was up 0.3 percent at $1.2593 <gbp=d4>against a broadly weaker dollar, paring Friday's losses.
The Australian dollar was 0.1 percent higher at $0.7555 <aud=d4>and the New Zealand dollar was also 0.1 percent firmer, at $0.7274 .
Liquidity in Asia was lower than usual with financial markets in Hong Kong, China and Singapore shut for the Lunar New Year holidays.