The dollar index, which tracks the greenback against six rival currencies, slipped from its late Thursday levels at 100.40.
The dollar edged up to a nine-day high against a basket of currencies on Thursday.
The euro fell to $1.0741 following the report, its lowest since March 21.
Money managers should be ready for "a lot of inefficiency" and currency fluctuations as Prime Minister Theresa May kicks off the official process of the U.K.'s exit from the European Union, a legal expert has told CNBC.
The dollar steadied after its worst week since U.S. President Donald Trump's election in November.
Concerns rose about the prospects of a U.S. public spending boost under President Trump after he failed to push through a health-care bill.
The dollar edged up against the yen on Friday, recovering from its worst run of daily losses versus the safe-haven currency since 2010.
The dollar held under $1.08 per euro for a second day on Thursday as investors awaited a vote on Republican health care plans.
The dollar hit a four-month low against the safe-haven yen on Wednesday.
The euro briefly rose above $1.08 for the first time in six weeks on Tuesday, following a TV debate on the France's presidential elections.
The dollar recovered slightly following reaction to a G20 summit dominated by Trump's protectionist bent extended last week's sales.
The dollar hit five-week lows against its peers on Friday, in the wake of the Federal Reserve's cautious message this week.
Divya Devesh of Standard Chartered Bank says the carry currencies, such as the rupiah and rupee, will benefit from dollar consolidation in the weeks ahead.
The dollar recovered as investors bought the currency on the back of sharp falls prompted by the Fed's failure to give a hawkish message on further rate rises.
The dollar added to losses after the Fed hiked interest rates, as expected.
Investors should take profits when the Kiwi/dollar cross reaches the 0.71 level, says Daryl Guppy, CEO of Guppytraders.com.
The dollar climbed ahead of an expected interest rate rise by the U.S. Federal Reserve.
The impact of higher U.S. market interest rates turned the dollar positive against both the euro and a basket of currencies.
The euro jumped to a fresh three-week high against the dollar on Friday.
The euro gained after ECB head Mario Draghi suggested it was less necessary to prop up the market through ultra-loose monetary policy.