The US dollar was under pressure on Friday after the US government reported consumer spending, the main driver of the world's biggest economy, stalled last month.
The euro was at US$1.5799 around 9pm GMT, down from US$1.5778 in New York late on Thursday.
The greenback was at ?99.16, down from ?99.59 on Thursday.
Dealers said the euro was boosted early by comments from European Central Bank (ECB) policymaker Axel Weber that reinforced the view the ECB will not cut interest rates soon.
The greenback, meanwhile, was weighed down by a series of mostly weak US economic figures this week that have bolstered expectations of further US interest rate cuts.
The US Federal Reserve has slashed its base federal funds rate to 2.25 percent from 5.25 percent since September to stimulate growth and ease a global credit crunch.
In fresh dismal news about the US economy, the US Commerce Department reported Friday flat consumer spending in February after price rises were adjusted for inflation.
"Mixed data for the US continues to hamper the outlook for the economy, but falling inflationary pressures increased bearish sentiment for the US dollar as market participants increase bets of another rate cut," Terri Belkas and David Song, analysts at Forex Capital Markets, wrote in a client note.
Meanwhile, the euro found support after reported comments by Weber reiterating that the ECB would focus on inflation risks, signaling it would refrain from cutting interest rates.
He said inflation was "alarmingly high" and suggested interest rates would not come down as long as price pressures continued.
A dramatic appreciation of the euro in recent weeks has caused concern in the eurozone that it could curb economic growth in the bloc.
Major European nations, led by France, argue that the soaring euro is hurting eurozone companies by making their exports more expensive.
The euro is "too strong" in light of the eurozone's lackluster economic growth, French President Nicolas Sarkozy said in a speech in London on Thursday.
"The dollar has never been weaker ... and the euro, which is based on too-low growth rates, is too strong," Sarkozy said.
The euro hit a record high of US$1.5905 on March 17 as the dollar was hit by a run of negative data and ongoing credit market turmoil.
In late New York trading on Friday, the dollar was at 0.9948 Swiss francs, compared with SF0.9940 late on Thursday.
The pound was at US$1.9948, down from US$2.0071.
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