The dollar edged back slightly against the euro on Friday, after indications by the European Central Bank that it would increase its key interest rates next month.
The 13-nation euro bought US$1.3003 in early Friday trading, down slightly from US$1.3038 in late New York trading.
The British pound bought US$1.9458, down from the US$1.9580 it reached Thursday following a decision by the Bank of England to keep its rates unchanged at 5.25 percent.
The dollar rose slightly against the Japanese yen, to 121.45, up from 121.05 yen Thursday.
CEB President Jean-Claude Trichet warned that "strong vigilance remains of the essence so as to ensure that risks to price stability over the medium term do not materialize" language that, in the past, has signaled a rate rise the following month, reports AP.
Higher interest rates, a weapon against inflation, support a currency by making assets denominated in that currency more attractive to investors.
Last week, the Federal Reserve left interest rates unchanged at 5.25 percent for the fifth straight time.