The dollar firmed for a second straight session on Friday after three consecutive days of losses, bolstered by safe-haven bids on worries about the health of the global economy with slow-downs evident in Europe, Japan, and China. "Dollar strength is still on the table here going forward and the driver behind that is policy divergence," said Andrew Dilz, currency strategist at Tempus Consulting in Washington.
In midmorning trading, the dollar index was up 0.4 percent on the day at 85.842.
The euro fell 0.5 percent to $1.2619, but was still likely to end the week with its strongest weekly gain since April. Against the yen, the dollar was flat at 107.81, but was on course for its biggest weekly loss in seven months.