This came as investors reversed bets made against the greenback on speculation that the Fed would not hike interest rates anytime soon.
The dollar hovering near a two-week high against a basket of currencies with investors focused on the next set of U.S. data.
The dollar rose after senior Federal Reserve officials bolstered expectations that U.S. interest rates will rise soon.
Markets will be eyeing non-farm payrolls due Friday as the data will have an impact on Fed expectations, says National Australia Bank's Christy Tan.
The dollar inched up on Friday as investors digested a speech from Federal Reserve Chair Janet Yellen.
The dollar was range-bound in illiquid Asian trade as currencies tread water ahead of the global central bankers' gathering in Jackson Hole.
The yuan's moves have become far less worrisome for markets even though it may take a while for investors to become more confident in China.
Investors focused on a gathering of central bankers for clues on when the U.S. Federal Reserve will hike interest rates again.
There are certain Chinese sectors that are seeing a concentration of inflows, notes BNP Paribas Investment Partners' Arthur Kwong.
Investors shifted their focus away from hawkish remarks on interest rates by Fed officials and towards Friday's Jackson Hole meeting.
The dollar rose after comments from Fed Vice Chairman Stanley Fischer prompted bets on an interest rate hike.
Foreigners may be avoiding China's stock market in droves, but it offers opportunities, said Julius Baer's head of research for Asia, Mark Matthews.
China plans to open its Shenzhen stock market for foreign investors, but it wasn't clear it would see more traffic than Shanghai's lackluster one.
The dollar was weighed down by investors' lack of belief in the chances of a rise in U.S. interest rates this year.
The dollar fell to a seven-week low against a basket of major currencies on Thursday.
Moody's Investors Service raised its forecasts for China's economic growth in the wake of "significant" fiscal and monetary stimulus policies.
China home price growth sped up in July, but it may not be able to keep up the pace.
After the release of the minutes, the U.S. dollar hit a session low against the yen while the euro touched a session high against the dollar.
The dollar hit its lowest in seven weeks on Tuesday, dipping below 100 yen for the first time since June.
CNBC's Rick Santelli speaks with Andy Rothman, Matthews Asia Investment Strategist, about the Chinese economy and how investors should view the country.