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 The dollar index <.DXY>, a composite of six currency pairs, was down
0.01 percent in late New York trade after rising about 0.40 percent
on U.S. labor reports showing a big drop in the jobless rate.
The dollar rose sharply against the yen after the jobs data to as
high as 103.02 yen but dropped back to a nearly flat 102.23 yen late
on Friday.
The euro was initially down 0.38 percent or more against the dollar
but was up a touch in late trading at $1.3874.
April's U.S. jobless rate was 6.3 percent, down 0.4 of a percentage
point, and the lowest since September 2008.
But the monthly jobs reports also showed a drop in the labor
participation rate, a reflection of increasing numbers of Americans
ending job hunting, and flat wage increases.
"Initially, it looked to people that the Federal Reserve might speed
up the normalization of interest rates but as they looked at details
(of the labor reports) they changed their minds," said Joseph
Trevisani, chief market strategist at WorldWideMarkets Online in
Woodcliff Lake, New Jersey.
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 The dollar will face headwinds in currency markets until the Fed
clearly adopts a program of raising rates, Trevisani said.
The U.S. government data, including a nonfarm payrolls surge of
288,000 far above Wall Street forecasts of 210,000, bolstered
optimism about the U.S. economy for many.
"This keeps the Fed on track for tapering and for the first interest
rate hikes in 2015," said Anthony Valeri, investment strategist at
LPL Financial in San Diego.
(Editing by Nick Zieminski and James Dalgleish)
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