An upbeat Purchasing Managers' Index survey from France and polls showing centrist Emmanuel Macron still in pole position ahead of the vote helped settle investors' nerves.
"We did see a decent amount of unwinding of some hedges," said Brad Bechtel, managing director FX at Jefferies in New York. "Hedges have appreciated so much in the last week or so that some folks are comfortable taking a little bit off."
However, the options markets still suggests investors are concerned about the chances of strong results for far-right candidate Marine Le Pen and far-left rival Jean-Luc Melenchon.
The dollar, which has been pressured lately by weaker-than-expected economic data and worries about the Trump administration's ability to pass tax and fiscal stimulus legislation, rose on Friday as traders squared up positions ahead of the weekend.
The dollar index, which tracks the U.S. currency against a basket of six major rivals, was up 0.18 percent at 99.954.
"Even if we don't get the Trump administration stuff, we still have a Fed that is hiking rates, balance sheet reductions still on the cards and the U.S. economy is still trucking along," Bechtel said. "All these things are still generally dollar-positive."