The greenback was pulling back against the other major currencies as oil and gold prices rallied amid heightened tensions in the Middle East.
One euro was buying $1.5635, up from $1.5494 Thursday. The British pound was selling for $1.9738 vs. $1.9733 in the last session, and the the dollar was trading for 107.3 Japanese yen, down from 107.93 yen previously.
Benchmark bullion futures were tacking on $3.30 at $907.50 an ounce in recent action on the Comex division of the New York Mercantile Exchange. Gold prices tend to rise during in times of geopolitical tension.
Large-scale military maneuvers by Israel are being seen as a dry-run for a potential attack on Iran, explains Ashraf Laidi, chief foreign-exchange strategist at CMC Markets in New York.
"The situation is worsened by bellicose response from Iran stating it would answer an Israeli attack with a 'strong blow,' driving oil prices back above $134 per barrel," he writes in a research report.
The New York Times
had an article Friday saying that Israel was conducting military drills American observers think could be a warm-up for bombing Iran's nuclear facilities.
CurrencyShares Euro Trust
was rising 0.9%. The
CurrencyShares British Pound Sterling
was ahead 0.1%. The
CurrencyShares Japanese Yen Trust
was up 0.6%.
SPDR Gold Trust
, which holds solid gold bars, was gaining 0.9%. In the precious metals patch
was adding 1.5%.