The concerns drove traders to book profits on bullish positions in the dollar.
The U.S. dollar hit a one-week low against a basket of major currencies on Friday after escalating geopolitical tensions led traders to take profits on the greenback after its recent strength.
The United States launched its first air strike against Iraq since American troops withdrew from the country in 2011.
Fighting has also resumed in Gaza between Palestinian militants and Israel, while the conflict between Russia and Ukraine remained on investors’ radar.
The concerns drove traders to book profits on bullish positions in the dollar, while the euro gained after traders took profits on short bets against the shared currency, analysts said.