The dollar inched higher on Friday, but was still on track for its biggest weekly drop in 24 years against a basket of currencies as investors feared the Federal Reserve's plans to buy longer-term government debt would undermine the value of the world's main reserve currency.
The euro reversed earlier gains, easing back from above $1.37 as investors booked profits on this week's sharp rally and some cited concerns about weaker euro zone members.
The dollar has fallen over 5 percent against the basket of currencies this week, heading for its biggest weekly decline since 1985.
A fall of 5.2 percent at the close later on Friday would also make this week's dollar plunge the biggest since 1973 when the Bretton Woods system of fixed exchange rates was finally abandoned.