Futhermore, Janet Yellen said on Wednesday that there are good reasons to believe the U.S. will stay on a path of moderate growth that will allow the Fed to pursue "gradual" adjustments to monetary policy. In her testimony before a congressional committee, she also acknowledged the risks facing the U.S. economy from tightening financial conditions driven by falling stock prices and uncertainty over China.
Elsewhere, the dollar edged up 0.40% against the Japanese yen, with USD/JPY to trade at 112.87, off Thursday’s 15-month trough of 110.98.
The single currency declined 0.74% against the dollar, with EUR/USD to trade at 1.1239.
Sterling pound was steady against the dollar, with GBP/USD to trade at 1.4473, but the dollar was higher against the Swiss franc, with USD/CHF gaining 0.47% to 0.9769.
Meanwhile, the Australian and New Zealand dollars were weaker, with AUD/USD down 0.44% at 0.7076 and NZD/USD tumbling 1.44% to 0.6619.
USD/CAD slipped 0.14% to trade at 1.3915, as the rebound in oil prices lent support to the commodity-related Canadian currency.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was up 0.48% at 96.09, off Thursday’s four-month low of 95.28.