The dollar sat tight on Friday, off two-month highs hit versus the euro and the Swiss franc the previous day, as the market awaited data that will show if the United States is covering its huge current account deficit.
Traders said the dollar's resilience in the face of weak U.S. retail sales and trade figures this week had suggested to investors there was room for the currency to rise.
"You can't sell the dollar now. It's just not going down," said Mitsuo Imaizumi, deputy general manager of the forex department at Daiwa Securities SMBC.
At 9:02 p.m. EDT Thursday, the euro stood at $1.2810, hardly budging from late U.S. levels on Thursday and off a two-month low of $1.2766.
The dollar was also little changed at 108.25 yen. It touched a five-month peak of 108.90 yen last week, helped by fresh fund buying by Japanese investors at the start of the new fiscal year in April.
The U.S. currency stood at 1.2135 Swiss francs after rising to just below 1.22 Swiss francs on Thursday.
U.S. capital flows data, due at 9 a.m. EDT, are forecast to show the country attracted $65 billion in foreign capital in February.
Though that figure would be down from $91.5 billion in January, it would be above the roughly $55 billion needed each month to cover the current account deficit.
Worries about the ability of the United States to finance its gaping current account deficit had pushed down the dollar to a record low versus the euro at the end of last year and to a five-year low against the yen in January.
On Thursday, Federal Reserve Board Governor Ben Bernanke repeated that the current account gap reflects a glut of savings around the globe and would likely narrow over time without a crisis.
"I see no reason why the whole process should not proceed smoothly," Bernanke said in remarks prepared for delivery at an even sponsored by the St. Louis Federal Reserve Bank.
The text of his remarks appeared identical to a speech he gave a month ago.