The dollar rose to its highest level in five days, just below a two-month peak after a better-than-expected ADP report.
The dollar steadied against a basket of currencies in early European trade, still stuck below highs hit in December and January.
The dollar rose against the euro after a former French prime minister ruled out standing in the country's presidential elections.
The dollar stalled after two days of strong gains on Friday, with nerves around a speech by Fed chief Janet Yellen due later in the day.
The dollar gained to seven week highs against a basket of currencies on Thursday, after hawkish comments by a Fed official.
The dollar hit its highest in seven weeks as signs from two influential Fed policymakers that interest rates could rise this month.
The dollar weakened as investors awaited President Donald Trump's speech to Congress for fresh indications of his economic plans.
The dollar pared losses against a basket of currencies on Monday after a Federal Reserve official delivered hawkish remarks.
The U.S. dollar fell to a more than two-week low against the Japanese yen on Friday.
The U.S. dollar fell against a basket of major currencies on a perceived lack of progress on U.S. tax reform and public spending.
The dollar index erased earlier gains after Fed meeting minutes showed the next interest rate increase could be soon.
The dollar rose broadly on Tuesday after two Fed policymakers pointed to the potential for US interest rates to rise next month.
The euro recovered some ground against the dollar after talks aimed at finding a leftist unity candidate for France's election showed little sign of progress.
The yen rose against major currencies as concerns about the upcoming French elections kindled safe-haven demand for the Japanese currency.
The dollar headed for a second day of losses on Thursday, falling against the euro, yen and the basket of currencies.
The greenback was previously on track for its 11th straight day of gains.
The dollar rose as investors raised their outlook on a faster pace of U.S. rate increases following comments from Fed Chair Janet Yellen.
The dollar hit a two-week high against the yen with another round of solid gains as investors focused again on the U.S. reflation trade.
The dollar gained in part on expectations of a constructive meeting between President Donald Trump and Japanese Prime Minister Shinzo Abe.
The New Zealand dollar was by far the biggest faller among major currencies on Thursday.