But the dollar's quick reversal of its gains this week despite a raft of favourable economic news underscored the market's negative view of the US currency, some analysts said.
The dollar gave back all of the rise it made after US data on Thursday showed a surprisingly strong jump in mid-Atlantic manufacturing and weekly jobless claims falling to the lowest level since late 2000.
Similarly the dollar failed to maintain its jump after Federal Reserve Chairman signalled on Wednesday that more steady rate rises are ahead, which would widen the yield advantage of dollar deposits over those in euro and yen.
"This shows signs of a return to the dollar weakening trend," said Tohru Sasaki, chief forex strategist at J.P. Morgan Chase Bank in Tokyo.
The yen remained under selling pressure after gross domestic product figures released on Wednesday showed that Japan's economy was in a recession for much of last year.
With a dearth of economic news in Japan on Friday and a US holiday next Monday, currencies idled in Asian trade.
The dollar was trading near $1.3070 against the euro, close to late Thursday New York levels. The dollar has eased about 2.5 percent against the euro since hitting a three-month high around $1.2730 last week.
The dollar was also little changed at 105.50 yen Traders expect dollar/yen to tread in a tight range, with buying in the 105.30 area and sell orders at around 105.70 yen.
The single European currency was at 137.90 yen threatening to extend its climb to 138 yen, a level not seen since January 7.