Investing.com - The dollar traded largely higher against most major currencies on Friday after investors brushed off the Federal Reserve's dovish monetary policy statement issued earlier this week and snapped up attractive greenback positions.
In U.S. trading on Friday, EUR/USD was down 0.11% at 1.3594.
The Federal Reserve on Wednesday left benchmark interest rates unchanged at 0.00-0.25% and cut its monthly bond-buying program to $35 billion from $45 billion in widely expected move.
The dollar weakened, however, after the U.S. central bank stopped short of offering a timetable as to when interest rates may rise.
Markets viewed the Fed's language as somewhat dovish.
"It likely will be appropriate to maintain the current target range for the federal funds rate for a considerable time after the asset purchase program ends, especially if projected inflation continues to run below the Committee's 2 percent longer-run goal, and provided that longer-term inflation expectations remain well anchored," the Fed said in its Wednesday policy statement.
Bottom fishers, however, brought the dollar back up on Friday as the U.S. economy is still seen as moving forward on the road to recovery.
Meanwhile in the euro zone, official data earlier showed that German producer price inflation fell 0.2% last month, compared to expectations for a 0.2% rise, after a 0.1% downtick in April.
The dollar was up against the yen, with USD/JPY up 0.19% and trading at 102.14, and up against the Swiss franc, with USD/CHF up 0.17% at 0.8956.
The greenback was up against the pound, with GBP/USD down 0.17% at 1.7011.
In the U.K., official data revealed that public-sector net borrowing rose to £11.48 billion in May from a upwardly revised £9.00 billion the previous month. Analysts had expected public sector net borrowing to rise to £12.00 billion last month.
The dollar was mixed against its cousins in Canada, Australia and New Zealand, with USD/CAD down 0.58% at 1.0756, AUD/USD down 0.14% at 0.9385 and NZD/USD down 0.24% at 0.8696.
The US Dollar Index, which tracks the performance of the greenback versus a basket of six other major currencies, was up 0.07% at 80.45.