Investing.com - The dollar gave back earlier gains against most major currencies on Friday, as investors sold the safe-haven currency for profits and snapped up positions in equities markets ahead of a holiday weekend in the U.S.
The dollar rose earlier after official U.S. data revealed that orders for long-lasting manufactured goods came in much stronger than expected for April.
In U.S. trading on Thursday, was down 0.05% at 1.2928.
Solid manufacturing data sent the dollar gaining earlier.
The Commerce Department reported earlier that core durable goods orders, which are stripped of volatile transportation items, rose 1.3% in April, far surpassing market expectations for a 0.5% increase after contracting by 1.7% in March.
Broader orders for durable goods, which include transportation items, rose 3.3% last month, more than market calls for a 1.5% increase after a 5.9% contraction in March.
The numbers sparked demand for the greenback earlier by stoking sentiments that the Federal Reserve may be closer to winding down monetary stimulus programs.
Stimulus tools such as the Fed's monthly USD85 billion bond-buying program weaken the dollar to spur recovery, and talk of their dismantling can strengthen the greenback.
The dollar erased those gains later in the session as investors sold the unit and took on risk in the stock market.
The greenback, meanwhile, was down against the pound, with trading up 0.16% at 1.5132.
The dollar was down against the yen, with down 1.08% at 100.91, and down against the Swiss franc, with trading down 0.85% at 0.9606.
Bank of Japan Governor Haruhiko Kuroda said earlier that monetary stimulus programs in the country were "necessary" but also "sufficient," which strengthened the yen.
The dollar was up against its cousins in Canada, Australia and New Zealand, with up 0.20% at 1.0324, down 1.02% at 0.9648 and trading down 0.61% at 0.8084
The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was down 0.13% at 83.68.