The euro has been weighed down by worries about the economic damage from war in Ukraine and last bought $1.1047, not too far from last month's almost two-year trough of $1.0806.
Russian President Vladimir Putin has told German Chancellor Olaf Scholz that European partners can continue paying for Russian gas in euros, a government statement said
The European single currency was at $1.1175 holding its highest in a month, having gained 1.7% so far this week.
The dollar index, which measures the greenback against a basket of six peer currencies, was down 0.57% at 97.861 at 2:20 p.m. Eastern Daylight Time, having earlier touched its lowest level since March
The dollar fell against a basket of peer currencies on Tuesday as reports of progress in peace talks between Russia and Ukraine lifted the euro
Russia has offered to buy back dollar bonds maturing next week in roubles in a move seen by analysts as helping local holders of the $2 billion sovereign issue receive payment
The US dollar was slightly lower, just off its highest since May 2020, while the yen staged a modest rebound after crashing to its lowest level since August 2015 on Monday
Gazprom has asked GAIL (India) to pay for gas imports in euros instead of dollars, two sources said, in a sign the Russian energy giant seeks to wean itself away from the US currency
The euro was edging higher on Friday, but concerns about a potential slowdown of the economy kept it in a tight range
The dollar climbed while the euro weakened as oil prices shot higher again with Biden poised to announce, alongside European leaders, new sanctions against Russia during his trip to Europe.
The dollar index rose 0.291%, with the euro down 0.46% to $1.0976.
The European Union currently seems unlikely to agree to a ban on Russian oil which would also weigh on the euro
The dollar index paused for breath on Friday, recovering slightly to 98.18 after declining every other day this week, and was set for a 1% loss over the period
The US dollar fell on Thursday and hit its lowest in a week as investors digested the Federal Reserve's monetary policy outlook
New Fed projections showed policymakers ready to shift their inflation fight into high gear; most of them see the federal funds rate rising to a range between 1.75% and 2% by the end of 2022
A stronger euro overshadowed the dollar index that has gained during the war in Ukraine.
By David Henry and Stefano Rebaudo
By Stefano Rebaudo
The euro was 0.25% higher at $1.1023 as of 1225 GMT, after rising as high as $1.11215 on Thursday in a choppy day.
The U.S. dollar climbed to a five-year high on the yen after a strong U.S. inflation report.