The U.S. dollar depreciated against its most major counterparts in the European session on Friday, as a jump in Democratic presidential candidate Joe Biden's lead over President Donald Trump in several polls and renewed hopes for a U.S. stimulus deal boosted investor sentiment.

Reuters/Ipsos opinion polls showed Biden ahead by 10 percentage points over Trump.

Growing hopes for a Democratic victory in the November election and the prospect of significant further stimulus reduced the demand for the safe-haven currency.

The Trump administration indicated on Thursday night that it was open to a broader coronavirus stimulus package - one that includes support for airlines, state and local government aid, and jobless benefits.

U.S. House Speaker Nancy Pelosi and Treasury Secretary Steven Mnuchin resumed their talks over the coronavirus aid plan, after Trump abruptly called off negotiations earlier this week.

Better-than-expected China services PMI also aided sentiment.

The Caixin composite services Purchasing Managers' Index for China rose to 54.8 in September from 54.0 in August, marking the fifth consecutive increase in service sector output. The expansion was underpinned by a sustained rise in total new business.

The greenback eased back to 105.83 against the yen, on track to pierce a 2-day low of 105.81 seen in the Asian session. The dollar is seen finding support around the 104.00 mark.

The greenback fell to 0.9122 against the franc, which was its weakest level since September 21. Next key support for the greenback is likely seen around the 0.90 level.

The greenback declined to more than a 2-week low of 1.1809 against the euro, versus Thursday's closing quote of 1.1758. The greenback is likely to face support around the 1.20 region, if it drops again.

Reversing from its early highs of 1.3196 against the loonie, 0.7167 against the aussie and 0.6575 against the kiwi, the greenback dropped to a 3-week low of 1.3160, 3-day lows of 0.7195 and 0.6623, respectively. The next possible support for the greenback is seen around 1.29 against the loonie, 0.75 against the aussie and 0.68 against the kiwi.

In contrast, the greenback rebounded from a 3-day low of 1.2973 against the pound and was trading at 1.2922. If the dollar strengthens further, 1.28 is seen as its next resistance level.

Data from the Office for National Statistics showed that the UK economy grew at a moderate pace in August as lockdown measures continued to ease.

Gross domestic product climbed 2.1 percent on month, slower than the 6.4 percent expansion seen in July.

U.S. wholesale inventories for August will be released in the New York session.

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