The dollar is likely to trade higher in the week ahead, with Friday's worse-than-expected U.S. non-farm payrolls data for October seen as the driving force for currency markets at least until mid week.

The dollar and yen rose Friday after a report showed the U.S. unemployment rate spiked and the economy lost more jobs than expected, stoking concerns about the U.S. economy and restoring safe-haven demand for both currencies.

The European Central Bank kept its main refinancing rate unchanged at a record low of 1.0 percent on Thursday, as expected by economists.

Investors are braced for signs on Thursday that the European Central Bank will soon start weaning banks off cheap and abundant liquidity given that expiry dates are approaching for the central bank's crisis measures.

The dollar held steady against a basket of currencies Thursday, a day ahead of a key government jobs report that will shed light on the health of the U.S. economy.

The dollar fell in choppy trading against the euro Wednesday after the Federal Reserve left interest rates steady, as expected, and said it intends to keep interest rates low for some time.

The U.S. dollar rose to a one-month high against a basket of currencies Tuesday as concerns about the global banking sector and weaker equity markets boosted the greenback's safe-haven appeal.

The dollar and yen fell Monday as improving economic data worldwide and rising stock prices eroded the greenback's safe-haven appeal.

The U.S. dollar recovered Friday after steep losses in the previous session as stocks failed to build on big gains following Thursday's data showing the economy grew in the third quarter.

The dollar slid against most currencies Thursday after data showed the U.S. economy returned to growth in the third quarter, reducing the greenback's safe-haven allure and sending investors elsewhere for better returns.

The dollar and yen gained Wednesday as concerns about a global economic recovery and steep losses in Wall Street stocks boosted the safe-haven appeal of the U.S. and Japanese currencies.

The United States welcomes the rise in the yuan's exchange rate in recent years but wants the currency to climb further, visiting Commerce Secretary Gary Locke said in Beijing.

The U.S. dollar pulled away from 14-month lows on Tuesday, as investors unwound short positions and took profits in high-yielding currencies after a sharp drop in stocks and commodities.

The dollar rose to a two-week high against the euro Tuesday after a report showing U.S. consumer confidence deteriorated sharply in October boosted the greenback's safe-haven appeal.

The U.S. dollar rallied from a 14-month low against the euro Monday as falling stock and commodity prices dampened risk appetite, prompting investors to lock in recent gains in other currencies.