US dollar index fell 0.53% on Friday, putting it on track for a second consecutive weekly decline amid Iran peace hopes.
Negotiations involve the US releasing $20 billion of frozen Iranian funds for Iran to surrender its enriched uranium stockpile.
Euro rose 0.56% to $1.1848, while the pound steadied at $1.3527 amid UK political uncertainty over Peter Mandelson vetting.
Australian dollar hovered near four‑year highs and yen remained flat as BOJ Governor Kazuo Ueda signaled no immediate rate hike.