The U.S. dollar lost some ground versus major rivals other than the Japanese yen, with the euro edging higher on renewed hopes Greece's European partners will agree to a deal on a second bailout by early next week.
In early New York trade, the euro was at $1.3173 from $1.3133 late Thursday. The dollar was at ¥79.36 compared with ¥78.93, while the euro traded at ¥104.55 compared with ¥103.60. The pound bought $1.5814 compared with $1.5801, while the dollar fetched 0.9175 Swiss franc from 0.9191 franc.
The ICE dollar index, which tracks the U.S. unit against six other currencies, slipped to 79.29 from 79.333 late Thursday.
The European currency had risen in Thursday trading following reports that the region's leaders were on track to approve money aid to Greece next week.
The euro rose "as markets became convinced that the ongoing negotiations for the Greek bailout will finally conclude next Monday," said Boris Schlossberg, director of currency research at GFT, in emailed comments.
The British pound was lifted after Britain's Office for National Statistics reported an unexpected 0.9% jump in January retail sales volumes.
The Japanese yen lost further ground on the back of dovish comments from the central bank government, as the dollar edged higher and the euro slipped.
The softer yen came after Bank of Japan Gov. Masaaki Shirakawa said Friday that the central bank would keep monetary policy loose, according to reports. Mr. Shirakawa said the bank's consumer inflation target of 1%—which could prompt it to tighten policy—is a long way off, adding that "the BOJ will continue with powerful monetary easing," according to Reuters.
