More evidence of an improving global economic outlook Friday emboldened traders to move into riskier assets, pushing the dollar mostly lower.
The euro climbed to 1.4206 dollars at 2100 GMT against 1.4156 late Thursday in New York.
The dollar meanwhile dipped to 94.83 yen after 94.95 on Thursday
"Almost all majors are getting a boost against the greenback as solid economic data out of Asia and Europe help to drive a positive tone in the forex market today," said Sacha Tihanyi at Scotia Capital.
The analyst noted that "strong growth data out of (South) Korea" and better than expected increases in German business sentiment and eurozone purchasing manager surveys offset a weaker-than-expected report on British economic activity in the second quarter.
Andy Douglass at PNC Bank said corporate earnings were also driving hopes of a rebounding economy.