LONDON/HONG KONG (REUTERS)

The US dollar headed for a second consecutive weekly decline on Friday, while the euro and British pound steadied, as investors unwound safe-haven positions on optimism stemming from a ceasefire between Israel and Lebanon and prospects for fresh Iran talks.

The dollar index, which measures the greenback's strength against six major peers, slipped 0.02% to 98.185.

The euro was steady at $1.178225and on track for a third straight weekly gain. Sterling, meanwhile, was unchanged at $1.35225. Against the yen, the dollar was steady at 159.225. 

The Australian dollar fetched $0.71710, staying near four-year highs, while the kiwi traded roughly 0.1% ‌lower at $0.5887.