The dollar jumped to a two-week peak versus a basket of major currencies on Thursday, supported by a recovery on Wall Street and signs the U.S. new tariffs announced on China won't actually go into effect.
The dollar index ticked up 0.1 percent to 90.20 .DXY.
The greenback gained 0.3 percent to trade at 107.08 yen while the Aussie lost 0.3 percent to $0.7691.
The euro slid 0.2 percent to $1.2258, reversing the previous session's moderate gains.
Sterling dropped 0.4 percent to $1.4016, the largest slump in more than a week.
Currency markets generally react negatively on trade tensions, and previous protectionist steps by the U.S. government have weighed on the dollar.