The dollar headed for its sharpest weekly drop of the year on Friday as Federal Reserve Chair Jerome Powell sounded more confident about cutting interest rates in coming months, while the yen gained on mounting speculation of a rate rise in Japan.

Asian shares rallied in relief on Thursday while the dollar nursed losses after the world's most powerful central banker reassured investors that U.S. rates would fall this year, setting the scene for policymakers in Europe.

British house building activity declined last month at the slowest pace since late 2022, with rising demand for housing projects pointing to a recovery in the property sector, according to a survey on Wednesday.

Japanese workers' real wages shrank in January for the 22nd consecutive month but at the slowest pace in over a year on weakening price pressures, data showed on Thursday.

China's exports growth likely slowed in the January-February period, a Reuters poll showed on Wednesday, suggesting manufacturers are still struggling for overseas buyers and in need of further policy support at home.

The head of China's state planner said on Wednesday that the government's 5% economic growth target this year, which many analysts say is ambitious, is achievable and that he expects the world's second-largest economy to have a good first quarter.