The euro regained its footing against the U.S. dollar as risk appetite soured anew late in the afternoon.
The dollar rose for a third straight session as gains on Wall Street and calmer financial markets enhanced risk appetite.
The low-yielding euro fell for a second session, as steadier global stock markets prompted investors to seek other currencies.
The dollar climbed Friday on measures taken by China to ease this week's market turmoil and a hefty rise in U.S. jobs in December.
It hit a one-month low of $1.0709 two days ago.
The dollar weakened against a basket of currencies on Wednesday after the release of the FOMC minutes from its December meeting.
The yen rose on Tuesday as traders sought safety in the low-risk currency on anxiety about sluggish global growth.
The Japanese yen rose broadly, as financial market turbulence sent traders scrambling for the traditional low-risk currency.
The dollar ended 2015 with a more than 9 percent annual gain against a basket of currencies on Thursday.
The U.S. dollar rallied against commodity currencies such as the Norwegian crown and Russian ruble on Wednesday.
The U.S. dollar gained against the euro on Tuesday after greater risk appetite hurt demand for the shared currency.
The U.S. dollar held near a more than one-week low against a basket of major currencies on Monday.
The dollar fell against a basket of currencies on Thursday, putting it on track for its steepest monthly loss since April.
The dollar rose in thinned trading on Wednesday after data painted a mixed picture of the U.S. economy.
Simon Derrick, chief currency strategist at BNY Mellon, talks about the narrow spread between sterling and dollar, and discusses the impact on markets if Britain leaves the EU.
The dollar slipped against a basket of currencies on Tuesday as more traders booked profits on bullish greenback bets.
Traders focused their attention on slumping commodities prices, on the global economy and central bank policies.
The dollar tumbled against the Japanese yen on Friday after the Bank of Japan merely tweaked its monthly asset-purchase program.
The U.S. dollar hovered near a two-week high against a basket of other major currencies a day after the Fed hiked interest rates.
With U.K. inflation hovering near zero, an interest rate rise by the BoE looks increasingly less likely to come hot on the heels of the U.S. hike.