The dollar continued to strengthen against major rivals on Friday, touching a new 8-month peak versus the euro amid downbeat German economic data.
A reading on German business confidence fell short of expectations, sparking fresh concerns about the pace of euro zone growth.
Traders are betting the European Central Bank will announce additional stimulus measures later this summer, weakening the single currency.
At the same time, the Federal Reserve may be thinking about tightening monetary policy amid a recent string of positive economic news from the U.S.
The Commerce Department released a report on Friday showing that durable goods orders rebounded by more than expected in the month of June. Durable goods orders were up 0.7 percent.
The dollar rose to $1.3425 versus the euro, its highest since November.
Figures from the Ifo Institute showed its German business-climate survey fell to 108.0 in July, marking a third straight monthly decline.
Meanwhile, the U.K. economy expanded as expected in the second quarter underpinned by services and manufacturing, data showed.
Gross domestic product grew 0.8 percent sequentially in the second quarter, the same as seen in the first quarter, preliminary data from the Office for National Statistics showed.
The dollar improved to $1.6960 versus the sterling, edging further from a recent 6-year low near $1.72.
There was little movement against the yen, with the par stuck in a tight range near Y101.80.