The greenback recovered from its four-month low on Friday, with Fed may have more leeway to lower interest rates in 2019 depending on the results of a crucial U.S. inflation measure that is scheduled for release later during the day.

The dollar index that gauges the greenback versus its major pairs rose by 0.08% at 101.86, gaining ground on the earlier session's low of 101.72, which was reached more than four months ago.

Fed raised the possibility of rate trims in 2024 at its final policy meeting of the year, accordingly the dollar index was on course for a weekly loss of roughly 0.73%, which would prolong last week's 1.3% slide.

EUR/USD climbed at $1.10125 before dropping 0.12% to $1.0996.

GBP/USD oved little at $1.26875 and was on track for a slight weekly increase as a result of pressure from this week's British inflation figures, which fared much worse than anticipated.

USD/JPY traded at 142.25 per dollar, unmoved by data released on Friday showing that core consumer prices in Japan increased 2.5% in November compared to the same month last year.