Dollar fell in European trade on Friday on profit-taking away from six-week highs, while US 10-year treasury yields slowed down.
Later today, US personal spending data will be released for December, which the Fed relies upon to gauge inflation data.
The Index
The dollar index fell 0.3% to 103.22, with a session-high at 103.72, after rising 0.2% on Thursday, approaching six-week highs at 103.82.
The gains remained underpinned by US GDP growth data for the last quarter of last week, which showcased the flexibility of the world's largest economy.
US Yields
US 10-year treasury yields fell 0.7% on Friday, underpinning non-yielding assets such as silver.
The losses come before personal spending data for December, which will provide important clues on the status of inflation and the likely path ahead for US monetary policies.
Currently, the odds of the first US interest rate cut at the Fed March meeting fell to 42%, while the odds for such a cut at the May meeting fell to 82%.
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