The US dollar firmed slightly on Friday as market participants positioned for next week's interest-rate decision and a possible signal that the US rate-hiking cycle may be nearing an end.
The euro dipped to US$1.1807 at 10pm GMT from US$1.1818 late on Thursday in New York.
The US dollar rose to ?120.99 from ?120.33 on Thursday.
The greenback stabilized on the back of a gain in a measure of US consumer sentiment and another report showing tight wholesale inventories relative to sales.
On the US rate front, the US Federal Reserve is widely expected to lift its benchmark rate by another quarter point to 4.25 percent on Tuesday.
The market's focus, however, will be on the accompanying statement and whether the Fed will continue to say that it plans to remove accommodative monetary policy at a "measured" pace.
"Next Tuesday's Federal Open Market Committee decision should produce the 13th rate hike of the 18-month long tightening campaign," said Ashraf Laidi, chief currency strategist at MG Financial Group.
"But it is the wording of the FOMC statement that once again should capture the interest of the markets on the basis that the Fed may need signal a near-term conclusion to the campaign," Laidi said.
Still, many analysts said they expect additional rate hikes from the US central bank that would wide, at least in the short term, the rate differential that has been attracting investors to the US dollar.
"We continue to forecast two more 25 basis-point moves from the Fed, with the funds rate peaking at 4.5 percent," UBS chief economist Maury Harris said.
Diane Swonk at Mesirow Financial said the Ben Bernanke, who takes over as Fed chairman from Alan Greenspan on Jan. 31, will want to boost rates at least once "to establish his inflation-fighting credibility with financial market participants."
In late trade, the US dollar stood at 1.3027 Swiss francs from SF1.2997 on Thursday.
The pound was being traded at US$1.7546 after US$1.7556 on Thursday.
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