On Friday, the euro gained ground following sharp overnight losses as markets took into account statistics indicating that inflation was beginning to moderate. This increased predictions that interest rates had reached their peak and that central banks would soon begin to reduce them.

The U.S. central bank's interest rate hikes are probably coming to an end with rate hikes, as indicated by signals given by Federal Reserve governors on Thursday, although they did not rule out tightening monetary policy even further should inflation trends falter.

Investor attention will now shift to Fed Chair Jerome Powell's remarks later on Friday, with traders probably going over every word to determine the direction of interest rates.

The dollar index that gauges the greenback versus its major pairs edged down 0.116% lower at 103.33.

GBP/USD advanced by 0.14% at $1.264.

EUR/USD dipped 0.21% at $1.0909.

USD/JPY ticked up by 0.06% to 148.09 per dollar, headed for its third week in a row of gains versus the US dollar, moving away from the almost 33-year low of 151.92 it briefly struck in mid-November.