A financial trader works at their desk at CMC Markets in the City of London, Britain, April 11, 2019.
"As the U.S. -China dispute seems to be heading for a resolution while the developed world is adopting very easy monetary policy, risk assets are enjoying the tail wind", said Masahiro Ichikawa, senior strategist at Sumitomo Mitsui DS Asset Management.
The U.S. dollar rose against haven currencies such as the yen and Swiss franc on Thursday but dipped against higher-yielders after reports that the U.S. and China have agreed to cancel trade tariffs, increasing hope that the two sides may sign a trade deal in the coming months.
After the blue-chip Dow and broader S&P 500 reached record closing highs on Thursday amid hopes of a trade war truce, USA stock futures pointed to a flat to slightly softer start for Wall Street shares.
The list compiler's measure of Asia-Pacific offers outside Japan edged up 0.2% in early exchange while Tokyo's Nikkei hopped 0.75% to a 13-month high.
"The market's attitude towards the euro is just plain negative right now", he said, adding that he expects the risk sentiment to wind down "unless or until the US administration chimes in with some confirmation" that the tariffs will be rolled back.
Against a basket of currencies, the dollar was 0.2% higher at 98.128.
"If anything, markets realize that it will take more of a formal process to get things going and make progress".
Germany's DAX, a gauge of investors' sentiment on trade, moved in synchronicity with the rest of the market and eased 0.4 per cent.
German exports posted their biggest rise in nearly two years in September, data showed on Friday, providing some relief amid widespread concern that Europe's largest economy will dip into recession in the third quarter.
"We had a lot of conflicting headlines and reports on the US-China trade negotiations, specifically whether or not a phase one trade deal. would include a reduction of existing tariffs", said Brian Daingerfield, head of G10 FX strategy, at Natwest Markets in Stamford, Connecticut.
"The "payback" in risk assets for a very downbeat picture earlier in the year looks unstoppable at the moment", he added.
The offshore yuan traded at 6.9976 yuan per dollar CNH= , having hit a three-month high of 6.9530 per dollar in USA trade on Thursday. Still, it is up 19 basis points this week and set for its biggest weekly rise in a month.
The prospects to the United States and China ending their trade war left the safe haven yen nursing losses against the euro and the Australian dollar.
Crude oil futures meanwhile fell amid lingering uncertainty over the long-awaited trade deal and rising crude inventories in the United States.
The yield has jumped to as high as 1.973%, a three-month peak, on Thursday and last stood at 1.924%.
Benchmark Brent crude fell 80 cents to $61.49 a barrel while West Texas Intermediate (WTI) crude fell 58 cents to $56.57 a barrel.
The dollar held steady at 109.26 yen on Friday, close to a five-month high, and was headed for a 1% gain for the week.
"We remain optimistic and continue expecting the dollar to gradually weaken next year, as we put trade tensions behind (us) and the outlook of the global economy improves", they said.