​The dollar steadied on Friday ⁠after sliding the previous day, as traders awaited confirmation that a ceasefire deal in the Middle East ‌could be imminent.

The euro was volatile and last little changed at $1.1573, near a one-week high after the European Central Bank's first interest ​rate hike in three years on Thursday.

The U.S. dollar was up 0.1% against Japan's currency at 160.12 yen, holding near a key ​level that ​often triggers concern about intervention from Tokyo.

The pound was steady at $1.342. Data showing the UK economy contracted in April had little impact, with markets focused on Iran talks.

AWAITING CONFIRMATION

U.S. President Donald Trump said on Thursday the ⁠U.S. and Iran could sign a peace deal as soon as this weekend that would reopen the Strait of Hormuz. Brent crude slid 3.4% to $87.33 a barrel on Friday.

Iran's semi-official Mehr news agency said on Friday the memorandum, which contained U.S. commitments to lift sanctions and its naval blockade, still requires final approval.

However, analysts and investors struck a ​sceptical note, saying potential breakthroughs ‌have previously failed ⁠to materialise.

"There's a question around ⁠the hopes of a deal, and questions around whether it will be met and agreed upon by Iran and the United ​States," said Michael Wan, senior currency analyst at Mitsubishi UFJ Financial Group in Singapore.

"It ‌sounds like it's quite close, but they're not exactly at the finish ⁠line."

The U.S. dollar index, which measures the greenback against a basket of six currencies, was flat at 99.77 after hitting a one-week low on Thursday.

Investors have tended to buy the safe-haven dollar when tensions in the Iran war flare, and sell it in favour of riskier assets such as stocks when peace talks appear to make progress.

"For today, the market will again be headline-driven. Will Vice President JD Vance be getting on a plane to Europe to sign some kind of agreement?" asked Chris Turner, global head of markets at ING.

"And more importantly, will we receive confirmation from Iran that it is happy with a deal and will also be sending a delegation to ‌Europe this weekend? Expect the dollar to be bounced around."

Data on Thursday showed ⁠U.S. producer prices increased more than expected in May, ahead of Kevin Warsh's ​first rate-setting meeting as chair of the Federal Reserve next week.

Traders expect the Fed to keep rates steady at 3.5% to 3.75%, but see a greater than 50% chance of a hike by year-end. Pricing edged slightly lower on Thursday after ​Trump's comments on a ‌potential deal.

In cryptocurrencies, bitcoin was up 0.6% at $63,743 but down 13% for the month ⁠so far.

(Reporting by Gregor Stuart Hunter in Hong ​Kong and Harry Robertson and Amanda Cooper in London; Editing by Jacqueline Wong and Kevin Buckland)