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The dollar held gains on Friday after President Donald Trump got his signature tax cut bill across the final hurdle and pressure mounted on countries to secure trade deals with the United States.
The greenback rallied from multi-year lows against the euro and British pound hit earlier in the week after stronger than expected US jobs data pushed out the timing for potential rate cuts by the Federal Reserve.
New Zealand's kiwi dollar, a common proxy for risk appetite, rose 0.2% to $0.608 NZD after US stocks climbed to new record levels.
The Republican-controlled House of Representatives narrowly passed Trump's "One, Big, Beautiful Bill" of spending and tax cuts that is estimated to add $3.4 trillion to the nation's $36.2 trillion debt.
With the US closed for Independence Day, attention turns to Trump's July 9 deadline when sweeping tariffs take effect on countries like Japan that have not yet secured trade agreements.
"The dynamic is raising questions about fiscal sustainability and bond market stability," said Kyle Rodda, senior financial markets analyst at Capital.com, referring to the bill's passage.
"However, for now, those risks are being looked through as the markets embrace signs of labour market resilience and hopes for further US trade deals."
The dollar index =USD, which tracks the greenback against major peers, had its worst first half since 1973 as Trump's chaotic roll-out of sweeping tariffs stoked concerns about the US economy and the safety of Treasuries.
Trump said the US will start sending letters to countries on Friday specifying what tariff rates they will face, a shift from earlier pledges to ink individual deals.
Against the yen the dollar was traded at 144.69 yen JPY=, down 0.2% from late in the US trading day when it surged 0.8%. The euro added 0.1% to $1.1769 EUR=, while sterling traded at $1.3668 GBP=D3, up 0.1%.
The Australian dollar fetched $0.6577 AUD=D3, up 0.1% in early trade.
US Labour Department's closely watch employment report on Thursday showed that nonfarm payrolls increased by 147,000 jobs in June, well ahead of economists' forecast in a Reuters poll for a rise of 110,000.
Market expectations that the Fed will leave rates unchanged at its July meeting rose to a 95.3% probability, up from 76.2% previously, according to the CME's Fedwatch tool.
Economists continue to expect the Fed would not start cutting rates again until September or even later.