Investing.com - The regained some ground on Friday and recovered from the previous session's more than 1% drop against other major currencies as markets digested the European Central Bank's policy statement and investors eyed upcoming U.S. jobs data.
EUR/USD slid 0.47% to 1.0891, after rising to one-month highs of 1.0982 on Thursday.
The single curreny rallied after ECB President Mario Draghi said on Thursday that the pace of the quantitative easing program is to remain unchanged at €60 billion, disappointing expectations that the central bank would speed up its bond-buying scheme.
Draghi added that the bank will expand its bond-buying purchase scheme beyond the current cut-off point of September 2016 until the end of March 2017, or beyond if necessary.
The comments came after the ECB's governing council lowered the deposit facility rate to -0.3% from -0.20%, in line with market expectations.
The ECB's main refinancing rate was left unchanged at a record-low 0.05%, in line with market expectations.
USD/JPY edged up 0.12% to trade at 122.72.
The dollar regained strength after Federal Reserve Chair Janet Yellen strongly indicated to Congress on Thursday that Fed policymakers are likely to vote to raise interest rates at its meeting in two weeks, barring any major shocks to the global economy.
"I currently judge that US economic growth is likely to be sufficient over the next year or two to result in further improvement in the labor market," she said
The greenback had weakened after the Institute of Supply Management reported on Thursday that its non-manufacturing purchasing manager's index fell to six-month low of 55.9 last month from 59.1 in October, missing forecasts for a reading of 58.0.
The data came shortly after the Department of Labor said the number of individuals filing for initial jobless benefits in the week ending November 28 increased by 9,000 to 269,000 from the previous week’s total of 260,000. Analysts expected jobless claims to rise by 8,000 last week.
Market participants were eyeing a highly-anticipated report on U.S. employment due later in the day for further indications on the strength of the labor market.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was up 0.44% at 98.25, off Thursday's one-month trough of 97.60