The dollar was on track to end a volatile week with a slight gain, as markets weighed the impact of Donald Trumps return to the White House on the US economy and the rate outlook.
The US dollar had lost ground in the previous session as traders closed out profitable bets on a Trump presidency following his election victory.
We need more clarity about US policies, said Athanasios Vamvakidis, global head of forex strategy at BofA.
Until then, the greenback will be trading data and expectations for the Fed easing path, he added, arguing that tariffs and tax cuts could be positive for the dollar in the short term but harmful in the long run, while all will depend on how the Federal Reserve reacts.
Against a basket of currencies, the dollar ticked down 0.05 to 104.37, on track to gain about 0.07 for the week.
