The dollar index, which measures the greenback against six major peers, increased 0.53 percent at 98.3100.
In late New York trading, the euro was down to 1.1073 U.S. dollars from 1.1164 dollars in the previous session, and the British pound was down to 1.3136 dollars from 1.3137 U.S. dollars in the previous session. The Australian dollar decreased to 0.7489 U.S. dollar from 0.7508 dollar.
The U.S. dollar bought 121.59 Japanese yen, lower than 121.79 Japanese yen of the previous session. The U.S. dollar increased to 0.9226 Swiss franc from 0.9225 Swiss franc, and it rose to 1.2479 Canadian dollars from 1.2476 Canadian dollars.
On the economic front, U.S. personal consumption expenditures (PCE), the Federal Reserve's preferred inflation measure, surged 6.4 percent in February over the past year, the Commerce Department reported on Thursday.
The core PCE, which excludes the volatile food and energy prices, jumped 0.4 percent in February, up 5.4 percent from the same period last year, marking the biggest jump in nearly four decades, the report showed. The index is well above the Federal Reserve's 2 percent target on inflation.
Elsewhere, the U.S. Labor Department said the nation's initial jobless claims, a rough way to measure layoffs, rose by 14,000 to 202,000 in the week ending March 26. Economists polled by The Wall Street Journal had estimated new claims would rise to 195,000.
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