China's currency has recovered all of its losses since the central Chinese city of Wuhan, where the coronavirus first broke out, was first put on lockdown.
The greenback was quoted at 105.72 yen after a 0.3% decline on Thursday.
The number of Americans filing new claims for unemployment benefits unexpectedly rose back above the 1 million mark last week, data showed on Thursday in a setback for a U.S. job market that has been crippled by the coronavirus pandemic.
A slight decline in Treasury yields was another factor working against the greenback. The dollar index against a basket of six currencies was on course for its ninth consecutive weekly decline.
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Sentiment for the dollar and risk assets like equities had already taken a hit after dovish minutes from the Fed's most recent meeting, which were released on Wednesday. Traders in the euro are looking ahead to the release later Friday of manufacturing data for the euro zone and for Germany, Europe's largest economy.
The growing consensus is the euro will continue to edge higher because European governments have taken decisive action on stimulus measures to support growth.
In comparison, U.S. Republicans and Democrats are still at loggerheads over additional economic stimulus, which analysts said is another reason to favour the euro over the dollar.
Elsewhere in currencies, the Australian dollar edged up to $0.7202, while the New Zealand dollar held steady at $0.6539.
