The U.S. dollar edged up against most other major currencies Friday on data pointing to sluggish overseas economic growth, while the Australian dollar sagged to a six-year low after a Chinese manufacturing gauge fell to its weakest in 15 months.
Recent U.S. economic figures have supported the notion that the Federal Reserve sees the economy as strong enough for it to end its near-zero interest rate policy as early as September, an action that dollar bulls have betting on since last year.
"Worries about global growth have been rekindled. That has sparked a play into the dollar," said Joe Manimbo, senior market analyst at Western Union Business Solutions in Washington.
The flash Caixin/Markit China Manufacturing Purchasing Managers' Index (PMI) dropped to 48.2, the lowest since April last year, while Markit's euro zone PMI gauge fell from a four-year high to 53.7 in early July.
In late U.S. trading, the dollar index was up 0.2 percent at 97.274, reducing its weekly decline to 0.6 percent.