The dollar held firm against its rivals on Friday, set for its first weekly gain since mid-December on optimism about talks to end the trade war between China and the United States.
The U.S. dollar rose on Thursday against a euro dragged lower by soft economic data, while the pound took off on hopes of a second referendum on Britain's membership in the European Union.
The dollar rose against the euro on Wednesday as the single currency was pushed lower by worries about the euro zone economy, while sterling was strong ahead of a no-confidence vote in British Prime Minister Theresa May's government.
The U.S. dollar rose against the euro on Tuesday after data showed Germany's economy slowed in 2018, and sterling slipped ahead of a parliamentary vote on the United Kingdom's withdrawal from the European Union.
Sterling briefly surged to two-month highs against the dollar on Monday after a report, subsequently denied, that a pro-Brexit faction of lawmakers could support Prime Minister Theresa May's Brexit divorce deal in parliament.
The dollar rose against the euro on Friday in choppy trading, boosted by technical factors after the single currency hit key resistance levels, even as the greenback's outlook remained bleak amid cautious signals from the Federal Reserve about further rate hikes.
The dollar rallied from three-month lows on Thursday, extending gains against the euro and yen, after Federal Reserve Chairman Jerome Powell said the U.S. central bank intends to further shrink the balance sheet, suggesting it is not done tightening monetary policy just yet.
The dollar sank on Wednesday to its lowest since October, with gains led by the euro and sterling, as risk appetite improved on optimism over U.S.-China trade negotiations, prompting investors to reduce their safe-haven bets.
The dollar rose on Tuesday, rebounding from a nearly three-month low in the previous session amid expectations of a pause in the U.S. rate hike cycle, as investors focused on the risk of a euro zone recession after data showed more signs of slowing in the region.
"I do think China's economy warrants a little more aggressive easing than the government's come through so far," said Hannah Anderson, global market strategist at J.P. Morgan Asset Management.
The dollar weakened on Monday, pressured by growing expectations the U.S. Federal Reserve will either pause or halt its interest rate hike cycle, with the euro and Swiss franc leading gains among its rivals.
The U.S. dollar slipped against the euro on Friday, giving up all the gains logged after a robust U.S. jobs report, following comments from Federal Reserve Chairman Jerome Powell that the U.S. central bank will be sensitive to the downside risks the market is pricing in.
The measures will included targeted reserve requirement ratio cuts aimed at supporting small and private companies, Premier Li Keqiang was quoted as saying in a statement on the website of the Chinese government.
The yen rallied against the dollar and euro on Thursday as investors sought the perceived safety of the Japanese currency after a shock revenue warning from Apple Inc exacerbated concerns about a Chinese and global economic slowdown.
The U.S. dollar climbed against the euro and sterling on Monday, starting the new year on a strong footing, but fell against the safe-haven Japanese yen as investors remained wary of slowing global growth and volatile equity markets.
The dollar fell against the yen and euro in thin year-end trading on Monday as optimism about progress in the U.S.-China trade dispute hurt its safe-haven allure, but the greenback stayed on track to log its strongest annual performance in three years.
The Australian dollar saw gains against the greenback on Monday on the back of expectations of progress in trade talks between China and the U.S.
The Japanese yen jumped on Friday as investors sought protection against volatile stock moves, while the greenback dipped as stocks traded higher after a dramatic week capped by large price swings.
The Japanese yen gained half a percent against the dollar on Thursday as widening cracks in global stock markets prompted investors to load up on perceived safe-haven assets.
The dollar gained against a basket of other currencies on Wednesday as U.S. stocks came off 20-month lows, though uncertainty relating to the U.S. government shutdown and Federal Reserve monetary policy remained a headwind for the greenback.