The dollar traded near a recent two-week low against the euro on Friday while the yen gained some ground after this week's much-awaited testimony from Federal Reserve chairman failed to inspire clear direction.
Investors are torn between strong U.S. economic data and worries about long-term damage to the dollar from the U.S. current account deficit, keeping major currencies stuck in range trade.
Volumes were also lower ahead of a long, holiday weekend in the United States.
"We have seen the inability in euro/dollar to push higher, volatility is low ahead of the long weekend," said Trevor Dinmore, foreign exchange strategist at Deutsche Bank in London.
"Greenspan didn't add much to the picture and the market is very technical."
Greenspan testified before congressional committees on Wednesday and Thursday, reinforcing expectations that U.S. interest rates had further room to rise.
At 3:30 a.m. EST the dollar traded steady on the day at $1.3056 per euro, holding near Thursday's two-week low of $1.3089 despite a recent series of strong data releases.
On Thursday, the Philadelphia Federal Reserve's business activity index rose to a better-than-expected 23.9 in February. Initial jobless claims also fell to the lowest level since October 2000.
The yen traded 0.14 percent up on the day at 105.35 yen per dollar. It was 0.21 percent stronger at 137.64 yen per euro.
WHERE NEXT?
Earlier this month the dollar fell from a three-month high against the euro, set after hopes for gradual interest rate hikes in the U.S. lifted the greenback from December's record lows versus the European currency.
But analysts are broadly undecided about the dollar's near-term direction.
"I'm struggling to see a major direction either way for the next few days," said Jake Moore, a forex strategist at Barclays Bank in Tokyo.
In Europe, gross domestic product data showed the French economy growing 0.8 percent in the fourth quarter of 2004 as consumer spending posted its highest quarterly rise in almost four years.
Markets were also waiting for December industrial production figures for the euro zone, due at 5 a.m. EST.
U.S. data releases on Friday included producer prices for January and the University of Michigan's preliminary consumer sentiment index reading for February. The index is seen steady at 95.5.