The dollar was mixed on Friday, with traders having largely priced in the impact of a widening trade deficit.
The euro dipped to US$1.2427 at 10pm GMT from US$1.2469 late on Thursday in New York.
The dollar dipped to ¥109.36 from ¥109.67 on Thursday.
The US trade gap for June widened slightly but not as far as some sections of the market had been expecting.
The headline seasonally-adjusted US trade deficit in goods and services for June came in at US$58.8 billion, a touch worse than the US$57 billion shortfall expected. Over recent sessions however, many had been talking of a deficit surpassing the US$60 billion level.
"The dollar mounted a rather surprising rally following today's trade report, but ultimately failed to maintain any sustained buying after a weaker than expected number from the Michigan confidence survey," said Michael Woolfolk at Bank of New York.
The question of whether the tide has turned against the dollar remained unanswered going by Friday's price movements.
"The price action suggest that market players are not yet fully convinced," Woolfolk said.
While the dollar's decline was still well in place, it might take the US portfolio flows data tomorrow to bring the "twin deficit" problem back into focus, he added.
Massive trade and budget deficits have kept the dollar under pressure for some time now.
But analysts also said that currencies such as the euro and pound have been able to move higher recently for independent reasons.
Carsten Fitch at Commerzbank Corporates and Markets pointed to slightly more hawkish rhetoric from the European Central Bank for the euro's gains.
The central bank was more upbeat about growth prospects than previously and also noted that it would be vigilant about price pressures amid rising oil and house prices.
"It would thus seem that the door has been closed on the possibility of a rate cut. It cannot be excluded that rate rise expectations for 2006 might increase, if euroland's economic data continues on the positive note of the past few weeks," Fitch said.
Meanwhile Stephen Jen at Morgan Stanley said he believes the dollar will "reassert itself" after several weeks of foundering.
"I believe the recent weakness in the dollar was due to two factors," he said.
"First, official flows to `redistribute' foreign reserves have supported the euro. Second, `equity culture' has superseded `bond culture,'" Jen said.
In late New York trade, the dollar stood at 1.2471 Swiss francs from SF1.2466 on Thursday.
The pound was being traded at US$1.8142 after US$1.8117 late on Thursday.
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