Dollar mostly lower vs. rivals in subdued trade
During late European morning trade, the dollar was lower against the euro, with EUR/USD adding 0.09% to 1.3542.
The greenback remained under pressure after the Fed on Wednesday held back from reducing the USD85 billion pace of its monthly asset purchases.
Fed Chairman Ben Bernanke refused to commit to reducing bond purchases this year, saying the stimulus program was "not on a preset course."
But markets were jittery as U.S. Republicans and Democrats must quickly decide on how to continue funding the government and whether to increase the government's borrowing authority by raising the debt ceiling.
If President Barack Obama's administration and Republicans do not come to an agreement to raise the nation's borrowing cap before October, the U.S. Treasury may be able to avoid exceeding the USD16.7 trillion debt limit, which could send the country into default.
Separately, investors were eyeing the outcome of Germany's general election on Sunday., with Chancellor Angela Merkel looking to secure a third term.
The greenback was steady against the pound, with GBP/USD easing up 0.05% to 1.6040.
Official data showed that U.K. public sector net borrowing rose less-than-expected in August, rising by GBP11.5 billion after a downwardly revised 1.1% decline the previous month. Analysts had expected public sector net borrowing to rise by GBP12 billion last month.
Elsewhere, the greenback slipped lower against the yen and the Swiss franc, with USD/JPY edging down 0.12% to trade at 99.33, and with USD/CHF falling 0.14% to 0.9093.
Earlier in the day, Bank of Japan Governor Haruhiko Kuroda reiterated his call for government efforts to bring its finances under control, saying that sustainable finances are a "indispensable" to achieve sustainable growth.
Speaking at a meeting in Tokyo, Kuroda offered few clues over whether he is planning to implement additional easing measures to mitigate the impact that an expected sales tax hike could have on Japan's economic recovery.
The greenback was mixed to higher against its Canadian, Australian and New Zealand counterparts, with USD/CAD rising 0.28% to 1.0294, AUD/USD shedding 0.16% to 0.9425 and NZD/USD adding 0.12% to 0.8385.
The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was down 0.07% to 80.42.
Trading volumes were expected to remain light on Friday, as no U.S. economic data was to be released throughout the session.
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