The greenback is in the spotlight as traders await U.S. inflation data for the Fed's advice. On Friday, the dollar reached its highest level in two weeks against the euro.

In the nearer term, markets are expecting the Fed to announce the second of three consecutive 50 basis point interest rate hikes next week, which has boosted the dollar in recent months. The Dollar Index, which measures the greenback against six other currencies, was steady at 103.3 after gaining 0.7 percent overnight. It rose 1.1 percent this week, which would be its biggest percentage gain since the last week of April.

The euro touched $1.0611 in early Asian trade, its lowest level since May 23, after losing 0.92 percent to the dollar Thursday following a volatile ECB-led session. The central bank of the 19 countries that use the euro said it would end quantitative easing on July 1, then raise interest rates by 25 basis points on July 21. The ECB signaled a larger rate hike in September unless the inflation outlook improves in the interim.

The euro also lost 0.55 percent against the British pound overnight and 0.86 percent against the Japanese yen, coming off a seven-and-a-half-year high. The yen was unable to gain any ground on the greenback, trading at 134.16 per dollar in early Asian trade Friday, around a 20-year low it recently straddled.

The risk-sensitive Australian dollar remained under pressure at $0.709, down 1.65 percent this week, hurt by stock market declines, while the British pound was also down against the dollar at $1.2486.

Bitcoin was at $29,800, after failing in its latest attempt to break through the $30,000 mark, a level it has been trading near for the past month.