The euro has gained ground on the dollar amid talk Spain is on the cusp of a rescue deal to stabilise its finances and its banking system.
The Financial Times said EU authorities were helping Madrid craft an economic reform program that will be announced next week, with the EU and the Spanish government focusing on measures required by international lenders as part of any new financial package.
At 2100 GMT (0700 AEST), the euro traded at $US1.2985, up from $US1.2966 late on Thursday. The euro traded up to $US1.3048 in the bumpy Friday session.
The yen was mixed after rising two straight days against the gravitational pull downwards of the Bank of Japan's newly unveiled monetary easing program.
The yen rose to 78.12 to the dollar from Y78.24, while it fell to Y101.42 per euro from Y101.46.
The British pound was higher, rising to $US1.6229 from $US1.6213, and the dollar also slipped on the Swiss franc, to 0.9324 francs from 0.9331 francs.
"The US dollar is lower as financial markets end the week on a calmer note and equity markets are higher," said Nick Bennenbroek of Wells Fargo Bank.
"The euro has had an up and down day but is higher overall. Media reports suggest that European authorities and Spain are working on a reform program which could be unveiled as soon as next week."
Trading was relatively flat all week, a pattern likely to continue through the end of the year, according to Geoffrey Kendrick at Nomura Foreign Exchange.
"We expect a lower volatility environment to persist for the remainder of 2012, but we think risks are skewed towards another wave of euro weakness in (the first half of) 2013, though the exact timing of such a move is difficult to pinpoint at this stage," he said in a market report.
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