The dollar index .DXY edged lower to 96.46 on Friday. A popular gauge has been sliding for two straight trading sessions from a 16-month peak of 97.69 touched earlier this month.
Investors focused on the pace of further interest rate hikes by the U.S. Federal Reserve.
The yen was steady at 112.96, although interest rate differential between U.S. and Japanese bonds makes investors to bet on the buck.
The Canadian dollar slipped 0.14 percent to trade at $1.3206 as oil prices fell on supply glut concerns.
The Aussie was down 0.08 percent at $0.7251. Analysts suppose the Australian dollar to remain subdued due to weak appetite for riskier assets.