The dollar rose against a basket of currencies on Friday in choppy trade.
The euro strengthened on Thursday, briefly rising above $1.10 for the first time in a week.
The dollar rose after its biggest fall in a month the previous session, while sterling gained in response to minutes from the Bank of England's last meeting.
The dollar retreated from a three-month high against a basket of currencies on Tuesday on profit-taking.
Japan's benchmark stock index is in touching distance of an 18-year high, thanks to a weakened yen which has come back into focus as events in China and Greece die down.
The dollar reached its highest in three months against a basket of currencies on Monday.
The dollar was on track for its biggest weekly gain in two months on Friday as investors bet on the chances of a U.S. interest rate hike.
The dollar index rallied to a seven-week peak, with an easing in jobless claims reinforcing market expectations of a US interest rate hike.
The dollar rose on Wednesday after Federal Chair Yellen reinforced market expectations for a U.S. interest rate hike, possibly as soon as September.
The dollar posted moderate losses against the euro and yen on Tuesday.
The dollar strengthened across the board on Monday after euro zone leaders clinched a deal with Greece in an all-night summit.
Dominic Schnider, Head of Commodity & APAC Forex at UBS Wealth Management, explains his optimism even as an emergency summit in Brussels continues into Monday.
The euro advanced across the board on optimism Greece was making progress in efforts to secure funding and stay in the euro zone.
The safe-haven yen and Swiss franc fell on Thursday after Chinese stocks rebounded.
The yen rose to a seven-week high against the dollar on Wednesday, as investors bought the Japanese currency for safety.
The euro will dip if Greece leaves the euro zone, but a protracted downtrend is unlikely, FX strategist Jens Nordvig says.
The euro fell more than 1 percent against a buoyant U.S. dollar on Tuesday.
The euro slipped against a stronger dollar, falling over 1 percent after the European Central Bank toughened up on Greek banks.
The euro tumbled across the board, but was off its lows, after Greece voted to reject the conditions tied to the country's debt bailout deal.
Dan Scott, VP, investment strategy & research at Credit Suisse, says European markets will likely see a flight to safety on Monday, with periphery markets in for greater volatility.