The dollar recovered on Friday from steep losses in the previous session after a government report showed a reasonably healthy pace of U.S. job creation in May, confounding investors' dour expectations before the release of the data.
The consensus forecast was 170,000 ahead of the jobs number, according to economists polled by Reuters. However, most investors had priced in a downbeat figure going into the non-farm payrolls report after Wednesday's softer-than-expected U.S. private-sector employment survey and a weak employment index in the Institute for Supply Management's non-manufacturing report.
The Labor Department's report showed that the U.S. economy created 175,000 jobs last month, with the unemployment rate edging up to 7.6 percent in May from 7.5 percent in April.
(Read More: No Swoon: Job Creation Continues, Rate Up to 7.6%)
However, analysts were heartened by the separate household survey, which showed employment rose 319,000 in May. Still, the report does not resolve questions about whether the Federal Reserve will start cutting back its quantitative easing program.