With increasing expectations the U.S. Federal Reserve will hold off raising interest rates until September at the earliest helped push the S&P 500 to a record high close on Thursday and drove the dollar to near its lowest level since January.
Gold hit a three-month high as the dollar came under pressure.
U.S. data showed recent dollar strength and lower oil prices suppressed producer price inflation in April, supporting the view the Fed will probably not raise rates until later this year.
"People are pretty focused on the weak numbers for the U.S.," said David Gilmore, partner at Foreign Exchange Analytics in Essex, Connecticut. "People are increasingly wondering if the Fed is going to be ready to begin raising rates in September."
With a rise in U.S. interest rates seeming more distant, some investors sold long dollar positions.
The U.S. dollar index, which measures the greenback against a basket of six major currencies, remained near a low of 93.133 hit earlier in the session. That level was the lowest since Jan. 22, when the European Central Bank announced a program of quantitative easing.
Wall Street gained as the dollar slipped, offering respite to U.S. multinationals.