The euro hovered near a three-year high against the sagging dollar on Friday, while improving investor risk appetite weighed on the yen.
The euro was 0.05 per cent higher at $1.2074 after rising 0.45 per cent overnight, reports Reuters.
The common currency received its latest boost overnight as data showed the euro zone economy closed out 2017 with the strongest growth in nearly seven years.
The euro has gained 0.6 per cent so far this week and a rise above $1.2092 would take it to its highest level since January 2015.
Weighed down by the greenback’s weakness against the euro, the dollar index against a basket of six major currencies was poised on a loss of 0.3 per cent this week.
It probed a three-month low of 91.751 on Tuesday and last stood at 91.838, headed for its third week of losses.
The common currency was near a 26-month high of 136.370 yen scaled overnight and on track for to gain 0.7 per cent this week.
The Australian dollar extended gains from the previous day and rose to $0.7870 AUD=D4, its highest since Oct. 20, before pulling back a little to $0.7854.
The Canadian dollar has also benefited from surging commodities, with crude oil prices at their highest since 2015.
The yen was a laggard within the major currencies, having sunk this week against its peers like the dollar, euro and Aussie.
The Japanese currency depreciated against the broadly weaker greenback due to increasing investor appetite for risk in the broader markets, which dimmed its allure as a perceived safe haven.
The dollar was 0.1 per cent higher at 112.830 yen, adding to modest gains from Thursday. It was little changed against the yen this week, during which it had momentarily slipped to a two-week low of 112.055.
