The euro was mixed on Monday as a new cash-for-reforms offer from Greece raised hopes a tangible deal is taking shape.
The euro fell against other major currencies, weighed down by anxieties that Greece may soon default on debts.
The dollar declined, with weaker-than-forecast US consumer inflation data making traders even more uncertain about when the Fed will hike rates.
The euro rose on Wednesday shortly after the U.S. Federal Reserve left its benchmark interest rates unchanged.
The euro was held hostage by the crisis in Greece while the dollar held firm after solid U.S. housing data bolstered the case for the Fed rate hike.
The euro erased losses on Monday after the Sunday failed debt talks between Greece and its creditors.
The euro rebounded against the dollar as Greece said it is getting closer to a deal on its debt.
The euro weakened after the IMF pulled out of debt talks with Greece while the dollar clung to modest gains on Friday.
The dollar slipped to two-week lows against the yen on Wednesday after Japan's chief central banker said the yen was "very weak."
The dollar inched ahead on Tuesday, eroding its previous session's loss, helped by a rise in U.S. bond yields.
The dollar dropped 1.5 percent against the euro and slipped from 13-year highs against the Japanese yen on Monday.
The dollar rallied to a 13-year peak against the yen and rose sharply against the euro.
The euro on Thursday traded back-and-forth against the U.S. dollar.
The race for a devalued currency is set for a new set of twists and turns this summer.
The dollar traded lower against the euro after the Federal Reserve said U.S. economic growth remained tepid.
The euro strengthened against the U.S. dollar, which was on track to post its biggest one-day loss against the single currency since mid-March.
The U.S. dollar advanced against major currencies after stronger-than-expected data on U.S. manufacturing activity and construction spending.
The dollar was mixed on Friday with month-end selling after a recent rally.
The dollar climbed to a 12-1/2-year high against the yen as investors bet that U.S. interest rates will rise later this year.
The dollar rose against most major currencies on Wednesday, hitting an eight-year peak against the yen.