The dollar index was still trading on Friday at 107 levels, settling near two-year highs as investors assessed the Fed's monetary policy outlook.
The dollar has risen by about 3% so far this month amid expectations that US President-elect Donald Trump's policies may restore inflation and limit the Fed's ability to cut interest rates at the same pace as previously set.
Data released on Thursday also showed that initial weekly jobless claims in the United States unexpectedly fell to the lowest level in seven months, indicating that the labor market remains strong.
But she also pointed to some recession taking longer for the unemployed to find new jobs, which could give the Fed a reason to cut interest rates again in December.
Markets are still pricing in a 60% chance that the Fed will cut interest rates by 25 basis points in December, with some traders betting on a temporary pause in the cut.
Investors are waiting for business activity data represented by the service and manufacturing PMI of both the United States, as well as France, Germany and Britain.
