The dollar bounced back against the euro Friday as a surge in US durable goods orders in March added to expectations for a rise in US interest rates.
The single European currency stood at US$1.1806 compared with US$1.1908 late on Thursday in New York.
The dollar traded at ¥109.27 from ¥109.41 on Thursday.
Official US figures showed durable goods orders jumped by 3.4 percent in March, while February's growth was revised up to 3.8 percent from the previous 2.7 percent.
"A strong first quarter is now even more likely as well as the possibility [depending upon productivity growth] that firms will need to increase hours or add employees in order to rebuild inventory levels that remain depressed versus the pace of shipments," said Drew Matus, analyst at Lehman Brothers.
Increasing confidence about the state of the US economy has led the markets to increasingly price in a US interest rate hike from the current 46-year lows of 1.00 percent by late summer.
Earlier this week the euro sank to a new five-month low of US$1.1781 on expectations that the interest rate differentials between the eurozone and the US will narrow.
While the Fed is expected to adopt a tightening bias soon, the European Central Bank is under further pressure to cut interest rates to help boost anaemic eurozone growth.
European policymakers are expected to come under pressure at this weekend's meeting of finance minister and central bankers from the Group of Seven richest countries to lift growth, though currencies are not expected to be a major topic of conversation.
While suffering against the dollar, sterling remained firm against the single European currency as the markets shrugged off weaker-than-expected British growth data to focus on a continued rise in retail sales.
Official data showed that British GDP grew by only 0.6 percent in the first quarter, below expectations of 0.8 percent.
Meanwhile, high street spending remained firm in March with retail sales rising 0.6 percent from a month earlier -- double what markets had been expecting, showing that two interest rate hikes since November have not worked to cool off consumer spending.
The euro was changing hands at US$1.1806 from US$1.1908 late on Thursday in New York, ¥128.97 (¥130.26), £0.6680 (£0.6710) and 1.5581 Swiss francs (Sf1.5573).
The dollar stood at ¥109.27 (¥109.41) and 1.3201 Swiss francs (Sf1.3026).
The pound was at US$1.7668 (US$1.7735), ¥193.07 (¥193.99) and 2.3328 Swiss francs (Sf2.3189).
On the London Bullion Market, the price of an ounce of gold stood at US$394.50 against US$392.30 on Thursday afternoon.
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