In late NY trading, the euro fell to 1.1960 dollars from 1.1998 dollars in the previous session, and the British pound decreased to 1.3542 dollars from 1.3575 US dollars in the previous session.
On the earnings front, AIG shares dropped 5.3 percent after the insurer reported a lower-than-expected quarterly profit, while Cardinal Health tumbled 21.4 percent after the drug distributor cut its annual earnings forecast.
"Good news is now bad news", said Peter Kenny, senior market strategist at Global Markets Advisory Group in NY.
The Bloomberg Dollar Spot Index fell 0.2 per cent.
A USA delegation led by Treasury Secretary Steven Mnuchin arrived in Beijing on Thursday for talks on tariffs, as Chinese media said the country would stand up to US bullying.
The U.S. central bank's custody holdings of U.S. government debt securities for overseas central banks totaled $3.048 trillion on May 2, down from $3.062 trillion the prior week.
Foreign central banks can keep their USA bond holdings outside the Fed.
The Fed statement was not quite as hawkish as some had expected, though sentiment remained bullish given USA rates were still clearly heading higher. The U.S. dollar was up to 1.0007 Swiss franc from 0.9973 Swiss franc, and it stayed flat at 1.2853 Canadian dollars.
After two years, Chhagan Bhujbal gets bail in money laundering case
Until then, Bhujbal's family can complete the formalities of enlarging him by furnishing a cash bond of similar amount. Even his nephew, Sameer Bhujbal, was arrested in this case and his bail plea is pending before the high court.
The dollar index, which measures the greenback against six major peers, increased 0.18 percent to 92.584 in late trading.
The difference between German and USA government bond yields was close to its highest in almost three decades on Friday ahead of the release of U.S.jobs data that could further demonstrate the countries' different inflation paths. Economists polled by Reuters had expected it to be unchanged from 1.3 percent in March.
West Texas oil hit a three-year high as traders weighed an increase in stockpiles against concern about US sanctions on Iran.
Oil prices rose, boosted by OPEC production cuts and the potential for new US sanctions against Iran.
Inflation in the bloc, at 1.2 percent, fell short of expectations in the first quarter of the year, while the figure after stripping out the effects of energy, processed food, alcohol and tobacco was even more dramatically low at 0.7 percent.
The relatively more hawkish stance has had an opposite effect on United States bonds, with the benchmark 10-year Treasury retreating from the crucial 3% level. U.S. West Texas Intermediate crude rose 50 cents to settle at $68.43, a 0.74 percent increase.
Gold prices are now flat.
Gold gained 0.2 percent to $1,314.41 an ounce.