The U.S. dollar fell on Friday as investors were looking forward to the trade talks between China and the United States.

Next week's trade talks between the two countries rekindled investors' hope that the two sides will find a way to ease the current trade tensions. Market demand for safe-haven currencies like the greenback was dented by the news.

On economic data, the U.S. Consumer Sentiment Index released by the University of Michigan (UM) Surveys of Consumers on Friday fell to 95.3 in August from 97.9 in July, lower than analysts' expectation.

The dollar index, which measures the greenback against six major peers, decreased 0.56 percent at 96.106 in late trading.

In late New York trading, the euro rose to 1.1442 dollars from 1.1365 dollars in the previous session, and the British pound was up to 1.2746 dollars from 1.2708 U.S. dollars in the previous session. The Australian dollar rose to 0.7317 dollar from 0.7259 dollar.

The U.S. dollar bought 110.60 Japanese yen, lower than 110.88 Japanese yen of the previous session. The U.S. dollar decreased to 0.9952 Swiss franc from 0.9964 Swiss franc, and it was down to 1.3054 Canadian dollars from 1.3157 Canadian dollars.