Pakistan, Oct. 17 -- TOKYO - The U.S. dollar weakened on Friday as concerns about the economy and global trade tensions encouraged expectations of more interest rate cuts by the Federal Reserve.

The dollar index, which tracks the greenback against a basket of currencies, was little changed at 98.23, but is set for its biggest weekly drop in almost three months, amid a U.S. government shutdown that delayed key economic data.

Against the Japanese yen, the dollar fell 0.2% to 150.12. The euro rose 0.1% to $1.1701. Sterling added 0.1% to $1.3446. Bank of Japan Governor Kazuo Ueda said the central bank could raise interest rates if growth and inflation forecasts improve, supporting the yen.

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