Currency strategists are weighing up whether to join a crowded trade or get comfortable with what has been described as a "seat on the Titanic."
The dollar index briefly trimmed its earlier gains on Tuesday after weaker-than-expected home price data in July raised doubts about the U.S. economy.
The dollar's three-month rally took a breather on Monday on nervousness over Beijing's response to democracy protests in Hong Kong.
The dollar was back on the front foot against the yen and several other major currencies on Friday, on track for an 11th straight weekly gain.
The euro hit a 22-month low against the dollar on Thursday on the prospect of diverging monetary policy.
The yen rose after Japanese Prime Minister Shinzo Abe voiced concern about the economic impact of its fall to a six-year low.
The battered euro pulled away from a 14-month trough against the dollar, as the greenback eased after a 10-week streak of gains.
The dollar index racked up a 10th straight week of gains on Monday, its longest winning streak since its free float in 1973.
The dollar rose against a basket of major currencies on Friday as investors bet U.S. interest rates would rise more quickly than expected.
The dollar rose after data showed U.S. jobless claims fell more than expected, reinforcing the view that U.S. interest rates will rise sooner.
The U.S. dollar strengthened following Fed news after earlier hitting an 8-year high against the Japanese yen.
Renewed sales of the Australian dollar were the main move on major currency markets on Tuesday.
Sweden's crown fell to a two-month low against the euro after the country elected a minority government.
The dollar index was headed for a ninth consecutive week of gains after retail sales data added to expectations that U.S. growth is gaining steam.
The U.S. dollar hit a six-year high against the yen and sterling recovered some ground after recent nerves over Scottish independence.
The dollar also trounced the Australian dollar and several emerging currencies on Wednesday, the latest sign of a long-awaited return of volatility.
Investors bet that the U.S. economy is growing at a pace that is likely to lead the Federal Reserve to begin raising interest rates next year.
Sterling plunged on fears over the outcome of Scotland's upcoming independence referendum and the Australian and Brazilian currencies also dropped.
The euro rose to session highs against the dollar after U.S. hiring in August fell far short of forecasts.
The euro hit fresh 14-month lows against the U.S. dollar and nearly two-year lows against the Swiss franc on Thursday.