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The U.S. dollar traded higher against its most major counterparts in the European session on Friday, following comments from Trump's top economic advisor Larry Kudlow that there have been some progress toward a meeting between the U.S. and China at the G-20 summit next month.

Speaking to CNBC's "Squawk on the Street" on Thursday, Kudlow said that there have been enormous talks about meeting Chinese President Xi Jinping late next month.

"There may be a meeting, but it has not been set in concrete as far as I know," Kudlow said. "They have lots to talk about, so we'll see."

Sentiment also lifted up after data showed Chinese exports have held up well so far despite escalating trade tensions with the U.S.

Chinese exports logged double-digit growth in September, figures from customs administration revealed.

Exports grew 14.5 percent year-on-year in September, faster than the 9.8 percent increase seen in August. Imports advanced an annual 14.3 percent, resulting in higher trade surplus around $32 billion in September.

On the U.S. economic front, the Labor Department released a report showing a much bigger than expected increase in U.S. import prices in the month of September.

The Labor Department said import prices climbed by 0.5 percent in September after falling by a revised 0.4 percent in August. Economists had expected import prices to rise by 0.2 percent.

Meanwhile, the report said export prices came in unchanged in September after slipping by a revised 0.2 percent in August. Export prices had also been expected to increase by 0.2 percent.

Investors await the University of Michigan's preliminary report on consumer sentiment for October, due at 10:00 am ET. The consumer sentiment is expected to inch up to 100.4 in October from 100.1 in September.

The greenback showed mixed trading against its major counterparts in the Asian session. While it held steady against the franc and the pound, it rose against the yen. Against the euro, it dropped.

The greenback rose to 1.1553 against the euro, from an 11-day low of 1.1610 seen at 1:00 am ET. The greenback is poised to target resistance around the 1.13 area.

Data from Eurostat showed that Eurozone industrial production grew more-than-expected in August.

Industrial production climbed 1 percent on a monthly basis, reversing 0.7 percent drop each in June and July. Output was expected to rise moderately by 0.4 percent.

After falling to a 3-week low of 1.3258 against the pound at 3:45 am ET, the greenback reversed direction and appreciated to a 2-day high of 1.3171. The greenback is likely to challenge resistance around the 1.30 level.

The greenback edged up to 0.9920 against the franc, reversing from a low of 0.9882 hit at 3:45 am ET. If the greenback rises further, it may find resistance around the 1.01 area.

On the flip side, the greenback pared gains to 112.01 against the yen, from an early high of 112.50. The next possible support for the greenback is seen around the 110.00 level.

Data from the Ministry of Economy, Trade and Industry showed that Japan's tertiary industry activity recovered in August.

Tertiary industry activity gained 0.5 percent month-on-month in August, in contrast to a 0.1 percent drop in July. Economists had forecast a 0.3 percent rise.