The dollar dropped from five-year highs against the yen Friday as investors reduced bets on the greenback amid caution ahead of a U.S. Federal Reserve policy meeting next week that may herald a wind-down of its massive stimulus measures.
The dollar firmed across the board on Thursday, helped by an upbeat U.S retail sales report that suggested the recovery of the world's largest economy is on a stable footing.
Asian stocks joined the global rally on Tuesday after strong data from the euro zone and the U.S. bolstered confidence in the global economy.
The euro edged higher against the dollar on Monday after two days of losses, lifted by euro zone data showing business activity picked up, while uncertainty over the Federal Reserve's economic stimulus program kept investors wary of the greenback.
Caution dominated trade in Asia on Monday after a preliminary reading of Chinese manufacturing activity fell to a three-month low in December.
U.S. stocks stepped higher on Friday, rebounding after a three-session decline.
U.S. stock index futures moved higher ahead of the publication of the Producer Price Index (PPI) for November at 8:30 a.m. ET.
U.S. crude oil fell, pressured by expectations that the Federal Reserve could announce a pullback of its bond-buying program.
Gold settled nearly 1 percent higher on Friday, helped by some buying after a sharp plunge in the previous session, but remained vulnerable.
Asian stocks followed Wall Street lower on Thursday on speculation that the Federal Reserve could pull back on its stimulus program soon.
Japanese stocks snapped their three-day losing streak on Friday as the yen resumed its decline.
U.S. Treasurys prices fell on Thursday as traders reduced their bond holdings in reaction to stronger-than-expected retail sales data.
U.S. stock index futures wavered between slight gains and losses on Thursday.
European equities extended a two-week sell-off to close lower on Thursday, as investors booked profits on heightened fears that the U.S. Federal Reserve could act soon start to unwind its bond-buying program.
Gold ends lower after three days of gains, as a tentative U.S. budget deal returned the focus to the Federal Reserve's stimulus plans.
The euro rose for a seventh straight session against the dollar on Wednesday, driven by a combination of higher money market rates and a growing belief that the European Central Bank will keep interest rates low for some time but not cut them.
Gold prices slid as expectations grew that the Fed would reduce its huge stimulus program after a provisional budget deal.
Stocks retreated for a second session Wednesday, with the S&P seeing its biggest loss in nearly five weeks, as the provisional budget deal in Washington raised speculation that the Federal Reserve could pull back on its stimulus program soon.
European equities closed lower on Wednesday after a U.S. budget deal added to expectations the Fed will scale back stimulus soon.
U.S. stocks ran sharply higher on Friday, with the S&P 500 bouncing back after a five-session drop.
Get the best of CNBC in your inbox