Investing.com - The dollar trimmed gains but continued to hover at a 14-year peak against the other majors currencies on Friday, as optimism over the strength of the U.S. economy and expectations for a December rate hike by the Federal Reserve continued to support.
EUR/USD was little changed at 1.0628, off an 11-month trough of 1.0582 hit earlier in the session.
The greenback remained broadly supported after strong U.S. initial jobless claims and inflation data on Thursday fueled further expectations for a rate hike at the Fed’s December policy meeting.
In addition, Fed Chair Janet Yellen said in testimony to Congress that an increase in interest rates could be "appropriate relatively soon".
Meanwhile, the euro weakened after European Central Bank President Mario Draghi said earlier Friday that the central bank will continue to act as warranted using all instruments available.
Speaking at the 26th European Banking Congress, in Frankfurt, Draghi added that the euro zone’s economic recovery still relies to a considerable degree on accommodative monetary policy.
Elsewhere, GBP/USD declined 0.73% to 1.2330.
USD/JPY edged down 0.12% to 109.98, after hitting a five-month high of 110.93 overnight, while USD/CHF was little changed at 1.0073.
The Australian dollar pared earlier losses, but AUD/USD was still down 0.17% at 0.7395, while NZD/USD gained 0.38% to 0.7052
Meanwhile, USD/CAD slipped 0.10% to trade at 1.3507.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was steady at 101.02, just off a fresh 14-year peak of 101.44 hit earlier in the day.