The dollar rose on Friday after upbeat U.S. data suggested weaker oil prices are providing additional momentum for the American economy, which also underpinned Asian shares.

U.S. crude futures CLc1 continued to drop after falling below the key psychological support level of $60 a barrel for the first time in five years, and stood at $59.15 in Asia, down more than 1 percent on the day.

Global crude prices have plunged in recent weeks on massive oversupply, raising fears that deflation could hit economies around the world. But data on Thursday showed that cheaper gasoline prices apparently helped U.S. consumer spending mark broad rises last month, and jobless claims also fell.

Wall Street ended higher on Thursday, but Asian investors have mostly focused on the downside of lower energy costs, which dragged down equities here this week.

"The relentless decline in oil prices continues to unsettle risky asset markets. Oil prices have fallen to levels last reached in mid-2009, as OPEC cut its demand forecast to a 12-year low despite lower prices, and U.S. crude inventories rose," Barclays strategists said in a note.

"Falling oil prices have provided little relief to Asian equities, most of which were down yesterday," they added.

MSCI's broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS was flat in early trade, though on track for a loss of over 2 percent for the week.

Japan's Nikkei stock average .N225 was up 0.4 percent in early trade, as a weaker yen helped exporter shares, but was poised to book a loss of more than 3 percent for the week.

The U.S. data helped the dollar wrest itself off a two-week low of 117.44 yen, and was last up 0.3 percent on the day at 119.04 yen JPY=.

The euro slipped about 0.1 percent to $1.2393 EUR=, after top-rated euro zone bond yields inched lower on Thursday following a tepid response by banks to the European Central Bank's second round of long-term loans.

Investors awaited Chinese retail sales data, to gauge the strength of the world's second-largest economy. Any signs of weakness are likely to raise expectations that Beijing will deliver further easing steps.