The U.S. dollar recovered slightly in early Friday trading, having fallen heavily after dovish comments from a key policymaker bolstered expectations of an aggressive interest rate cut this month.

At a central banking conference on Thursday, New York Fed President John Williams argued for pre-emptive measures to avoid having to deal with too-low inflation and interest rates.

That sent the dollar down before it rebounded slightly after a New York Fed representative subsequently said Williams' comments were academic and not about immediate policy direction.

The euro weakened 0.2% to $1.1261 but remained firmly within its weekly range as traders wait for next week's European Central Bank meeting.

The dollar index, which hit a two-week low of 96.648, bounced to 96.855. The dollar did particularly well against the yen, rising 0.3% to 107.60.

Source : Reuters