The dollar firmed on encouraging US data on Friday to US$1.1766 to the euro from US$1.1829 three hours earlier and US$1.1902 in New York late on Thursday in response to firm economic data in the US and comments that the rise of the euro was a threat to the German economy.
On Tuesday the euro had reached a historic high point against the dollar of US$1.1933.
The dollar was being quoted here on Friday at ?119.47 from ?118.798 earlier and ?117.98 late on Thursday.
"The euro is again under pressure against the dollar," BNP Paribas economist Iain Stannard said.
"Encouraging US figures supported the dollar on one hand, and on the other comments by German Chancellor Gerhard Schroder weighed on the euro," he said.
Schroder told the Moscow Kommersant newspaper that the rapid rise of the euro was a threat to German exports.
In the US an index of activity in the manufacturing sector in the Chicago region by local purchasing agents rose to 52.2 points last month from 47.6 points in April.
This figure was far higher than expected by analysts who had expected about 49 points.
A figure above 50 points signals that activity in manufacturing is picking up.
In addition, the US index of consumer confidence in the economy, by the University of Michigan, was 92.1 points last month from 86.0 points in April.
At the Canadian CIBC bank, economist Audrey Childe-Freeman commented that "investors are rather more cautious before the G8 meeting [from today to Tuesday] in case there is any statement on the outlook for the foreign exchange market."
This view was shared by analysts at Credit Suisse First Boston bank who said that the short-term risk for the euro was that US President George W. Bush might continue to deny any suggestion that the dollar was being abandoned.
Meanwhile sterling, which has fallen heavily this year against the euro, held up against the single currency "given the possibility of a widening of the difference between the bank of England's key rate and the European Central Bank's rate," analysts at brokers Sucden said.
They argued that the Bank of England was likely to decide at the beginning of this month to maintain its key rate at 3.75 percent but that the ECB might reduce its rate of 2.50 percent by half a percentage point.
The euro was being traded at US$1.1766 from US$1.1902 late on Thursday, at ?140.54 from ?140.40, at ?0.7176 from ?0.7195, and at 1.5323 Swiss francs from 1.5268.
The dollar was at ?119.47 from ?117.98 late on Thursday and was at 1.3025 Swiss francs from 1.2837.
Sterling was at US$1.6397 from US$1.6532, at ?195.90 from ?195.04 and at 2.1254 Swiss francs from 2.1212.
The price of gold was US$361.40 an ounce from US$365.80.
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