The dollar pulled higher Friday against the euro helped by a steep rise in US Treasury yields that reflected rising expectations of an early end to Federal Reserve stimulus.
Treasury yields jumped to their highest in two years, the 10-year bond rising to 2.83 percent, compared to 2.76 percent Thursday and 2.59 a week ago, as traders latched onto an apparent slowdown in layoffs and firming of the consumer price index in July as pointers to tighter monetary policy.
But traders remained hesitant on the dollar, given other signs of sluggish US growth -- including a slightly disappointing report on July housing construction -- and the eurozone's return to expansion after a recession spanning six quarters.
At 2100 GMT the euro was at $1.3326, compared to $1.3346 late Thursday.
The dollar pulled up to 97.53 yen from 97.36, while the euro rose to 1.3326 yen, from 1.3346 yen.
Christopher Vecchio, currency strategist at DailyFx, said the dollar was held back in part by fresh data on the housing sector showing weaker than expected new home construction.
"It was quite clear that the surge in US Treasury yields since early-May has had a negative reverberation throughout the broader economy," he said.
"The pressure US homebuyers faced in June continued in July, with a second consecutive month of disappointing housing data hurting the US dollar."
The British pound slipped, to $1.5619 from $1.5639, while the dollar was flat against the Swiss franc at 0.9259 franc.