The Canadian dollar was at C$1.3425 to the greenback, or 74.49 U.S. cents, weaker than Thursday's close of C$1.3407, or 74.59 U.S. cents.
The loonie remained close to a six-week high hit on Thursday.
"To a large extent though, the CAD is still the tail of the FX dog and, with no domestic data ahead until next Friday's GDP report, the CAD will remain a slave to USD flows, crude oil, and the broader market tone," said Shaun Osborne, chief FX strategist at Scotiabank in Toronto.
The U.S. dollar fell against the Japanese yen on Friday after China's foreign ministry told the U.S. embassy early on Friday to close its consulate in the city of Chengdu, after Washington ordered the closure of the Chinese consulate in Houston.
The greenback also slipped against the euro after a survey showed euro zone business activity bounced back to growth in July. Separately, data showed U.S. business activity increased to a six-month high in July, but companies reported a drop in new orders as a resurgence in new COVID-19 cases across the country weighed on demand.
The loonie, which has been helped in recent sessions by rising oil prices, found little of that support on Friday as oil prices were nearly flat on the day.
On Friday, Canadian government bond prices were little changed on the day. The two-year yield was at 0.282% down from 0.285% late on Thursday, while the benchmark Canadian 10-year yield was at 0.504% up from 0.503%.
By Saqib Iqbal Ahmed
