The dollar index was little changed, underpinned by hawkish Federal Reserve rhetoric and elevated U.S. yields, and is on track for a weekly gain of about 1%.

The spot dollar index edged down 0.1% after rising for five consecutive trading sessions. The 10-year Treasury yield fell 1 basis point to 5.19%.

"Higher yields, elevated energy prices and persistent inflation concerns are supporting market demand for the dollar," said OCBC currency strategist Shen Mingsong. He added: "Next week's nonfarm payrolls report may determine whether the dollar can extend this rally."

Further reading: Fed's Paulson said further modest rate hikes may be needed.

The dollar fell 0.1% against the yen to 158.69, with traders staying alert to possible intervention by Japan's Ministry of Finance. The euro was flat against the dollar at 1.1377. The Australian dollar was broadly unchanged at 0.7015. The pound was flat at 1.3217.

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