In July, U.S. producer prices increased for a third straight month, and factory production rose at its strongest pace in eight months, the U.S. government said. Those figures were mitigated by a surprise deterioration in the University of Michigan's index on U.S. consumer sentiment in early August.
Friday's economic readings kept in play bets the Fed will increase rates by year-end.
Read MoreChina's yuan depreciation could hit domestic firms
The euro rose earlier Friday as investors unwound euro-funded carry trades in the yuan and other emerging market currencies, which were hit hard by the yuan devaluation on Tuesday. The euro also got a boost from the Greek government's approval of a deal with creditors.
But the dollar recovered on the latest U.S. data, and the euro was down 0.3 percent at $1.1110, paring its weekly gain against the greenback to 1.3 percent.
The euro held near its session lows against the dollar on Friday after the European Commission confirmed a deal to lend cash-strapped Greece up to 86 billion euros over three years following talks in Brussels.
On Friday, the People's Bank of China set the yuan midpoint at 6.3975 yuan to the dollar, slightly stronger than Thursday but marking a record weekly loss of 2.9 percent against the dollar.
In response to the market turmoil, Beijing sought to allay fears that a cheaper yuan could trigger a "currency war," or a race among the world's biggest economies to cheapen their own currencies to keep their exports competitive.
Some analysts said China would resume devaluation, perhaps at a slower pace, in the coming months.
"A 2 to 3 percent drop (in the yuan) is not enough. They obviously have problems with its economy," said Jose Wynne, currency strategist at Barclays in New York.