The dollar was on track for its first weekly gain in five against a basket of currencies, as optimism grew the US Congress would reach an agreement on a stop-gap deal to avert a devastating US default.
President Barack Obama and congressional Republican leaders moved to end their fiscal impasse on Friday but struggled with the details for a short-term reopening of the federal government and an increase in the US borrowing limit.
With no certainty a deal would be struck to raise the limit by the October 17 deadline, analysts said the dollar would remain pressured while safe-haven currencies such as the yen would be attractive. Worries about the US budget and debt crisis had driven the dollar index to an eight-month low last Thursday.