The greenback continued to slip lower, trading flat in the European session as markets now await the release of US NFP jobs data.
The dollar index remained at a 4-month low against most other major currencies, still weighed down by expectations of a slower rate hike by the Federal Reserve (Fed) at its next meeting.
Data on Thursday further bolstered market confidence that price pressures have eased, with the Fed's preferred measure of inflation, US personal consumer spending (PCE), easing in October.
Meanwhile, market sentiment improved following an expected shift in China's Covid-19 policy towards a more relaxed approach and encouraging economic growth.
As a result, the strengthening momentum of the Aussie and New Zealand dollars continued with the support of the positive sentiment and the weakness of the giant US dollar.
In the meantime, the euro and pound remained strong with their respective 6-month and 4-month highs against the greenback.
The president of the European Central Bank (ECB), Christine Lagarde, warned that some fiscal policies of European governments could lead to excess demand. Thus, fiscal and monetary policies need to go hand in hand for sustainable and balanced economic growth.
The next focus for investors is the release of the US NFP data which is expected to record slower employment growth in November with the unemployment rate remaining at 3.7%.
