During U.S. morning trade, the dollar was lower against the euro, with EUR/USD edging 0.14% higher to 1.3028.
The euro remained under pressure amid speculation over a possible rate cut by the European Central Bank after Goldman Sachs on Thursday said it now expects the ECB to cut rates by 0.25% at next week's policy meeting.
The investment bank also revised down its euro zone growth forecast for 2013 to minus 0.7% from minus 0.5% previously.
Markets were also eyeing a series of new growth measures to be unveiled by the Spanish government, a day after official data showed that the unemployment rate ticked up to 27.2% in the first quarter, from 26.0% in the previous quarter, compared to expectations for a rise to 26.5%.
The greenback was lower against the pound, with GBP/USD rising 0.33% to 1.5484.
Elsewhere, the greenback was lower against the yen and the Swiss franc, with USD/JPY tumbling 1.65% to trade at 97.62, with USD/CHF shedding 0.34% to 0.9416.
The yen found support after the Bank of Japan in a statement reiterated its commitment to enlarge the monetary base by JPY60 trillion to JPY70 trillion a year.
The central bank also predicted inflation will almost match its target in two years.
In Switzerland, data showed that the KOF economic barometer rose to 1.02 in April from a reading of 1.00 the previous month, beating expectations for a fall to 0.98.
The greenback was mixed to lower against its Canadian, Australian and New Zealand counterparts, with USD/CAD edging down 0.23% to 1.0178, AUD/USD slipping 0.09% to 1.0283 and NZD/USD adding 0.22% to 0.8520.
Earlier Friday, official data showed that New Zealand's trade surplus expanded to NZD718 million in March, from a surplus of NZD441 million the previous month, confounding expectations for a decline to NZD373 million.
The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was down 0.50% to 82.47.
In the U.S., final data showed that the University of Michigan's consumer sentiment index rose to 76.4 in April, from a reading of 72.3 the previous month, beating expectations for an increase to 73.2.
The data came after the Bureau of Economic Analysis said, in a preliminary report, that U.S. gross domestic product rose 2.5% in the first quarter, less than the expected 3.0% increase, after a 0.4% rise in the previous quarter.