The dollar edged down slightly Friday against the euro, which traded a little above $1.32 at the end of a week that has seen the U.S. currency buoyed by optimism about the country's economic outlook.
Ahead of U.S. payroll data being released later Friday, the 12-nation euro was trading at $1.3235 by midmorning in Europe - up from $1.3172 in New York late Thursday.
Positive U.S. economic data this week - along with minutes of the Federal Reserve's Dec. 14 meeting, released Tuesday, that showed policy-makers suggesting that short-term interest rates need to move higher - have helped the dollar recover from its weakness during thin, volatile trading around Christmas.
The euro has retreated significantly from its all-time high of $1.3667, reached Dec. 30.
Concern over the wide U.S. trade and budget deficit had powered the euro's rise from around $1.20 in September. Despite this week's dollar revival, those worries haven't gone away -- and many analysts expect the dollar to resume its fall this year.
In other trading Friday, the dollar fetched 104.27 Japanese yen -- down from 104.59 yen in late trading in Tokyo and below the 105.03 yen it bought in New York overnight.
The British pound bought $1.8821, up from $1.8741 in New York late Thursday.