On Thursday, the euro rose to a three-week high, and the dollar declines the day before the last meeting of this year to determine the monetary policy of the European Central Bank.
EUR/USD rose 0.18% to 1.0772, just below Monday's high at 1.0795, its highest level since November 15.
The ECB is expected to announce the extension of its quantitative easing program in the amount of €80 billion per month, which should be completed in March 2017, but may also signal the start of the imminent decision to cut the volume of asset purchases.
On Monday, the single currency fell to a 20-month low after the rejection of the constitutional reforms of the Italian Prime Minister Renzi in a referendum and its subsequent confirmation that he would resign.
However, the euro quickly rebounded as concerns about the risk factors for Italy appears to have been exaggerated.
However, the focus remains on the crisis of the banking sector in Italy.
On Thursday, the Italian Government has asked the European Central Bank more time to rescue Banca Monte Dei Paschi (MI: BMPS), stating that the resignation of Renzi makes it impossible to complete the process quickly.
The USD Index, which tracks the greenback against a trade-weighted basket of six major rivals, fell 0.21% to 100.08, trading near Monday’s three-week 99.87.
The dollar weakened against the yen: USD/JPY pair dropped by 0.25% to 113.47 from a 9.5-month high of 114.83 reached last week.
Demand for the dollar is still supported by expectations that the Fed will raise interest rates this month.
New Zealand's dollar strengthened by 0.68% against the USD to 0.7216 after the country's central bank said on Thursday that interest rates are likely to remain at the current level for some time.
AUD/USD gained 0.29% to 0.7501 on data showing growth in imports and exports of China in November, and pointed to a recovery in demand in the country and in the world.