The dollar rose last week against a basket of major currencies boosted by a growing view that the Federal Reserve may stop cutting interest rates. US economic data last week showed resilience in some sectors, such as the labor market, contrasted with a sharp drop in business sentiment in Germany. That news, combined with ECB policy-makers' comments highlighting worries about excess volatility in Foreign Exchange trading, lowered expectations for a rate hike in the euro zone and hurt the Euro.

The percentage chance the Fed will keep its benchmark interest rate unchanged at 2.25% at this week meeting rose to about 26%. Just a week ago, futures markets were pricing between a 25 to 50bp cut. Meanwhile, FX participants were paring bets that the ECB's next move will be a hike in benchmark interest rates.

On Friday, EurUsd was down 0.32% at 1.5626 after dropping as low as 1.5555 intraday, a three-week low. UsdChf last traded down 0.14% at 1.0342. UsdJpy was up 0.07% at 104.43. GbpUsd went up 0.61% to 1.9847 rebounding from intraday 1.9677 low.

Last week's rally in the Dollar may have also led some investors to sell the currency ahead of the weekend to cash in profits, traders said. On Friday, Dollar had limited reaction to a report showing US consumer confidence fell for a third straight month, touching its weakest in more than 25 years. In Europe, the Ifo German business sentiment index showed the biggest monthly fall since September 2001 on Thursday, taking the April headline number to a two-year low. Together with a soft euro-zone manufacturing survey, the data knocked the Euro off record high 1.6019 set at the start of last week.