The dollar held steady today after staging its biggest one-day rally since August in the previous session as surprisingly strong US manufacturing data brightened the outlook for the US economy.
The Institute of Supply Management's report of healthy manufacturing growth wrong-footed investors used to disappointing US data, propelling the dollar away from this week's three-year low against the euro and four-year low against the Swiss franc.
However, with the Iraq issue still looming, investors were reluctant to extend the dollar's rally much further, leaving the dollar changed from Thursday's New York close.
Markets are waiting for January 27th, when UN inspectors are due to report to the UN Security Council on whether they have found any weapons of mass destruction in Iraq.
With little major economic data scheduled for release today, attention was focused on events for next week.
President Bush is due to unveil an economic-stimulus package on Tuesday that is expected to total as much as $300 billion.