Yen's slide continues, euro edges higher to dollar

New York - The yen slid to a fresh 12-year low against the dollar Friday as growth in the two major economies continued to diverge.

The euro meanwhile edged higher against the greenback amid fresh pressure from the G7 on Greece and official creditors to reach a new financing deal before the country defaults on its debt.

The dollar rose past 124 yen, with the Japanese currency pushed downward by a flat inflation reading and falling household spending in April and economists' warnings that the Japanese economy will have a weak second quarter.

The dollar remained in a narrow range for the euro, but showed more strength against the British currency, pushing to $1.5287 per pound, the greenback's best level in three weeks.

"The dollar is king for May, and we believe that it can last into June, although gains may not be as broad-based as this month," said Kathleen Brooks at Forex.com.

"However, it may struggle vs the euro if we get a last minute Greece deal."