The dollar fell for a third day on Friday against a basket of currencies as traders booked gains on its recent run-up tied to the widening interest rate gaps in favor of the United States and signs of cooling growth in the rest of the world.
The Swedish crown continued its rally, as more traders exited their bearish bets on hints that some Riksbank officials are open to raising interest rates despite worries about low inflation
The euro rose for a second day as the greenback retreated further from a 2018 peak reached earlier this week. The single currency, however, was still on track for a loss for a fourth straight week against the dollar.
"People are taking profits. The move is losing some steam," Chuck Tomes, senior investment analyst at Manulife Asset Management in Boston, said of the dollar's rise that started in mid-April and Friday's profit-taking.
An index that tracks the dollar versus six currencies rose initially before selling re-emerged. It was down 0.11 percent at 92.54, after hitting its strongest level of the year at 93.416 on Wednesday. The dollar index posted a slim 0.04 percent loss on the week in late trading, following three straight weeks of gains.
The euro scored a 0.24 percent gain at $1.1942 and a 0.18 percent rise against the Japanese currency at 130.53 yen. On the week, the common currency was set to fall 0.15 percent against the greenback and to eke out about a 0.08 percent gain versus the yen.