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The yen pulled back from a two-week high versus the dollar on Friday after North Korea said it was open to resolving issues with the United States after President Donald Trump cancelled the June summit with its leader, Kim Jong Un.
Although the yen and the safe-haven Swiss franc had strengthened on Thursday due to heightened worries over global politics, traders were quick to lock in gains ahead of a long weekend in the United States and Britain.
The dollar index, which measures the greenback against a basket of six other peers, rose 0.2 percent at 93.912 and not far from the five-month peak it notched on Wednesday.
The greenback had been gaining for weeks on its widening yield advantage but lost some of its momentum after minutes of the Federal Reserve's last policy meeting published on Wednesday were seen as more dovish than markets had expected.
The yen dropped 0.3 percent to 109.59 yen following conciliatory comments from North Korean Vice Foreign Minister Kim Kye Gwan. The Japanese currency had reached a two-week peak of 108.955 per dollar overnight in a knee-jerk reaction after President Donald Trump cancelled the planned summit with Kim.
The euro slid 0.1 percent to $1.1710, and was poised for a sixth straight week of falling against the dollar, weighed down by worries over a deepening economic slowdown in the currency bloc. Six consecutive weeks of losses would be its longest such streak since January 2015.
Also weighing on the euro was the insistence of the far-right League, a partner in Italy's planned coalition government, that eurosceptic economist Paolo Savona be appointed economy minister.
