The dollar held near a six-week peak on Friday, after conflicting signals over a U.S.-Iran peace deal whipped up volatility across financial markets, though investors latched on to hopes of some progress, Reuters reported.
Washington and Tehran stuck to opposing stances over the latter's uranium stockpile and control of the Strait of Hormuz, although U.S. Secretary of State Marco Rubio said there had been "some good signs" in talks.
The mixed messages whipsawed markets overnight, though currency moves were largely subdued in Asian trade on Friday as investors awaited more clarity.
The dollar was a touch higher and stood at 99.23 against a basket of currencies , not far from a peak of 99.515 hit in the previous session, its highest since April 7.
The euro , which was headed for a second weekly loss, was down 0.1% on the day at $1.1607, while the pound was slightly lower at $1.342, having shrugged off data earlier that showed retail sales dropped by the most in nearly a year in April, as consumers felt the pinch of the inflationary effects of the Iran war.
The dollar found additional support from U.S. data, which showed weekly jobless claims fell last week while manufacturing activity rose to a four-year high in May, underscoring resilience in the world's largest economy.
"We're coming to the end of week 12, we're six weeks in the ceasefire, and I'm just not really that convinced we're any closer to a resolution between the U.S. and Iran," Tony Sycamore, a market analyst at IG, said of the Middle East war.
"I still feel like the risks are for the U.S. dollar to go higher, because I really just don't see a way out of this situation in the Middle East without them sort of needing to be more forceful."
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