Comments by Federal Reserve chief Janet Yellen this week have prompted markets to price in a U.S. rate hike early next year and if second-quarter U.S. data comes in strongly that could also increase the dollar's allure.
Fed officials including Richard Fisher, James Bullard and Narayana Kocherlakota are due to speak later on Friday and could offer more guidance on the U.S. central bank's thinking after Yellen surprised markets mid-week.
Data from the ECB on Friday showed the euro zone's current account surplus hit a record level in January, when portfolio investments rose to 16.9 billion euros.
The euro's rise saw the dollar index slip to 80.13, off a three-week high of 80.35 set on Thursday.
Yen, Swiss franc supported
With the dollar pausing, the safe-haven yen and Swiss franc outperformed as traders grew cautious going into the weekend amid rising tension between Russia and the West following Moscow's annexation of Crimea. Russian stocks fell sharply as investors digested the impact of U.S sanctions over the crisis in Ukraine.
EU leaders meeting in Brussels are also mulling wider economic sanctions.
The dollar fell almost 0.2 percent against the yen to 102.25 after topping out at 102.69 on Wednesday, while the euro was flat against the yen at 141.05 yen. The dollar was also lower against the Swiss franc near 0.88 francs.
Meanwhile, the Chinese yuan steadied after hitting a 13-month low with traders saying there were signs that the currency may be finding a base.
The yuan has shed more than 1.2 percent so far this week - a record weekly loss - after the central bank last weekend doubled the currency's permitted trading range to 2 percent either side of the fixing.
Many saw this as a signal of official comfort with the currency's recent losses, with the central bank keen to shake out hot money from the market.
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