The dollar fell sharply against the euro on Friday after anxiously awaited US retail sales figures and a consumer sentiment survey failed to live up to the market's high expectations.
The single European currency fell to US$1.1304 in early European trading from US$1.1207 late on Thursday.
The dollar stood at ¥117.37 against ¥117.07 on Thursday.
The single European currency climbed to the US$1.1300 level after the release of data showing US retail sales rose by 0.6 percent last month from July, less than half the size predicted by Wall Street analysts.
Retail sales were still up 5.4 percent from August last year.
"The data were definitely worse than expected," said ABN Amro analyst Aziz McMahon.
"The market, I think, wasn't positioned for that and we have had a bit of dollar selling," he added.
Adding to the unease about the state of the economic recovery in the US was a worse than expected survey of consumer sentiment from the University of Michigan.
The index weakened to 88.2 points in early September from 89.3 in late August, when it had been expected to a rise to 90.3.
Bear Stearns chief currency strategist Steve Barrow said the dollar could be on the retreat further next week as the US financial authorities pressure Japan and China about their currencies.
The dollar gained against the yen as investors ignored an expected Bank of Japan decision to leave monetary policy unchanged, though intervention concerns were at work again, dealers said.
"The dollar is also deriving support from the suspected intervention by the Japanese authorities," said Halpenny.
The Japanese government is thought to have resumed its efforts to curb the strength of the yen recently through intervention on the foreign exchange market to help boost the competitiveness of its exporters.
The euro was changing hands at US$1.1304 from US$1.1207 late on Thursday in New York, ¥132.72 (¥131.20), £0.7046 (£0.7025) and 1.5562 Swiss francs (Sf1.5503).
The dollar was being quoted at ¥117.37 (¥117.07) and 1.3767 Swiss francs (Sf1.3834).
The pound was at US$1.6048 (US$1.5946), ¥188.34 (¥186.67) and 2.2087 Swiss francs (Sf2.2062).
On the London Bullion Market, the price of an ounce of gold rose to US$378.25 from US$376.30 on Thursday afternoon.
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