The dollar stabilized after a two-day slide Friday as traders mulled the impact of a US move to pump more than a trillion dollars into the financial system and whether other nations would follow.
At 1900 GMT, the euro fell to 1.3544 dollars from 1.3660 dollars in New York late Thursday.
Against the Japanese currency, the dollar rose to 95.90 yen from 94.55 yen on Thursday.
The greenback was still licking its wounds two days after the US central bank surprised markets with a decision to add 1.15 trillion dollars to its effort to revive economic activity in a process known as quantitative easing -- the equivalent of printing money.
Jon Gencher at BMO Capital Markets said the dollar has seen "a fundamental change in the both the shorter-term and longer-term outlook."
He argued that "the dollar's status as 'the' reserve currency is likely to be debated going forward with the likelihood that we hear more talk of reserve baskets," he added.
"That said, playing devil’s advocate, given the state of the global economy and other central banks taking rates close to or approaching zero, they may have to announce some fairly drastic quantitative measures of their own that could level the field."
Marc Chandler, a currency strategist with Brown Brothers Harriman, said however that the Fed's measures may turn out to support the dollar in the longer term.
"We continue to believe that the aggressiveness of the US policy response ... will be rewarded with an earlier recovery than in Europe and Japan," he said.
The euro had risen against the dollar earlier Friday even as data showed factories and refineries in the 16 countries using the single currency ratcheted down production at the fastest pace on record in January.
Industrial output in the recession-hit eurozone slumped 3.5 percent in January from December and dropped 17.3 percent over 12 months.
Economists had forecast that production would fall 4.0 percent over one month and 15.5 percent over one year.
In late New York trade, the dollar stood at 1.1296 Swiss francs from 1.1239 Thursday.
