The dollar initially firmed, extending its gains on Thursday, after a modestly narrower than expected U.S. December trade gap.
The U.S. December trade deficit was $56.4 billion, below economists forecasts for $57.0 billion. The Commerce department revised its estimate of the November trade gap to $59.3 billion, down from $60.3 billion.
The wide U.S. trade gap has been a persistent weight on the dollar.
Early morning in New York, the euro fell to session lows around $1.2740 according to data down from around $1.2780 shortly before the report and down about 0.4 percent from levels late on Wednesday in New York.
Against the yen the dollar rose to three-month highs around 106.70 yen, up from around 106.28 yen shortly before the report and up about 1 percent since late Wednesday in New York.