The dollar made gains Friday against major currencies, rebounding after bad news about the U.S. trade deficit sent it lower earlier in the week.
The 12-nation euro traded as low as $1.3057 before bouncing back. The currency was at $1.3117 in midday trading, down from $1.3203 in late trading Thursday in New York.
The British pound was down to $1.8714 from $1.8810 on Thursday, while the dollar bought 102.61 yen, up from 102.45 yen the day before.
The dollar was battered Wednesday, with the euro shooting up about 2 cents to more than $1.32 when the U.S. Commerce Department reported the November trade deficit hit an all-time high.
But the dollar has since clawed its way back, as a member of the U.S. Federal Reserve hinted at more aggressive interest rate hikes and President Bush reiterated his support for a "strong dollar" policy in a USA Today report.
At the same time, European Central Bank President Jean-Claude Trichet said in Paris that recent movements in the euro-dollar exchange rate are both "unwelcome and undesirable for economic growth."
The euro rocketed up from around $1.20 in September to an all-time high of $1.3667 at the end of December, making European products more expensive overseas and threatening the continent's largely export-driven economic recovery.
The rise has largely been driven by concerns over the United States' ever-burgeoning trade and budget deficits.