The euro was on track for its biggest weekly drop in four months as data showed an economic slowdown in Europe was spreading, pulling government bond yields lower.
The euro consolidated at a two-week low in subdued trading. Some traders said large buy orders around $1.13 offered support.
With China out for holidays this week, market volatility has fallen. Investors have taken stock of the opening weeks of the year, and most of the consensus trades at the end of 2018 incurred losses.
Going into 2019, the dollar was expected to weaken, especially against the euro and the yen. But so far, it has gained more than a percent against the euro and been flat against the Japanese currency.
The European Commission cut its growth and inflation forecasts on Thursday, as downside surprises to German and Spanish industrial orders fueled worries about an accelerating slowdown.
That data has weighed on bond markets; core government bond yields in Europe are at their lowest in over two years. Benchmark German yields are just 10 basis points away from zero percent.