The dollar is falling despite more positive signs about the U.S. economy as investors locked in recent gains.
Government reports showed U.S. factory output increased, led by the auto industry, and inflation remained modest outside a spike in gas prices.
The euro is up to $1.3083 in morning dealings Friday from $1.30 late Thursday, amid signals that European leaders are trying to temper these austerity policies and spur growth.
The British pound is up to $1.5137 from $1.5081. Traders were responding to remarks from Bank of England Governor Mervyn King that signaled the central bank does not want to see further declines in the currency. The pound has been in retreat for the past few weeks on expectations of another monetary stimulus from the central bank.
The dollar fell 95.60 Japanese yen from 96.02 yen.