The US dollar was slightly higher in late trade here, ahead of the release of some key data out of Europe and the US, including closely watched US personal income data, dealers.
The US unit weakened sharply overnight but rebounded in Asian morning trade after the release of some key Japanese data at the start of the session.
The euro initially hung on to its overnight gains, briefly extending them to 1.2177 usd from a New York high of 1.2172, before easing back to end the morning almost flat, dealers said.
The dollar however gained against the euro in the afternoon session, with the European unit falling to a late session low of 1.2130 usd.
Analysts noted that as the first quarter of 2006 ends today, the dollar has experienced a rougher than expected start to the year, as it has lost ground against both the euro and the yen.
"By the end of the quarter, the conclusion was that the US was closer to the end of its rate hike cycle, while the eurozone and Japan are still at the start of theirs," DBS Bank analysts said.
Attention is now on a host of economic indicators from Europe and the US due later, with the main feature, personal income data, dealers said.
Other than personal income, Friday's other US data releases include the final March University of Michigan Sentiment, the March Chicago purchasing managers index and February factory orders.