The dollar headed into the Christmas break on Friday just over half a percent off highs hit after this month's Fed meeting.
The dollar dipped for a second day as traders booked profits ahead of a batch of U.S. data later in the day.
The dollar took a breather from its run since the November 8 U.S. presidential election.
The dollar was boosted by Fed comments that kept alive market expectations for a faster pace of U.S. interest rate hikes next year.
The yen jumped on Monday on safehaven bids following news the Russian ambassador to Turkey was gunned down in the Turkish capital.
The dollar edged higher on Friday, holding near 14-year highs touched after Wednesday's Federal Reserve meeting.
The dollar surged to its highest level in 14 years on Thursday on anticipation of a more hawkish Federal Reserve.
The dollar hit a 10 month high against the yen of 116.45 after the Fed approved the first interest rate hike in a year.
Markets were still uneasy that a Fed meeting ending on Wednesday may provoke more investors to cash in the greenback's recent gains.
There's still some upside left for the dollar while political uncertainties weigh on the euro, says Khoon Goh at ANZ Research.
U.S. bond yields climbed on the back of expectations of broadly higher inflation, driven by a 5 percent rise in global oil prices.
The ECB's extension of its easing program drove the single currency to its biggest daily loss against the dollar since the Brexit vote.
The euro fell Thursday as the European Central Bank announced an extension of its quantitative easing programme.
The dollar story is driving the AUD at the moment, says Bank of Singapore's Sim Moh Siong.
The euro gained slightly on the dollar on Wednesday as investors focused on Thursday's European Central Bank meeting.
Bets on market volatility stayed close to their highest since June's Brexit vote ahead of this week's European Central Bank meeting.
LONDON, Dec 6- The euro retreated from a 3- week high on Tuesday while bets on market volatility stayed close to their highest since June's Brexit vote ahead of this week's European Central Bank meeting on its quantitative easing program. The Australian dollar was the morning's biggest loser, dipping as much as 0.4 percent after the Reserve Bank kept interest...
LONDON, Dec 6- The euro held steady near a 3- week high on Tuesday while bets on market volatility stayed close to their highest since June's Brexit vote ahead of this week's European Central Bank meeting due to give new guidance on its quantitative easing programme. The Australian dollar dipped about a quarter of a percent after the Reserve Bank kept interest...
The euro recovered from against the dollar after Renzi's loss in a referendum over constitutional reform was seen as largely expected.
Tony Boyadjian, Compass Global Markets, weighs in on the impact of the pro-U.S. growth trend on the dollar.