- The euro rose against the dollar Friday on positive news from the European Central Bank, recovering from a week that saw it drop several times below the $1.20 mark. The The British pound also strengthened against the dollar, buying $1.7569, up from $1.7538 in New York. The dollar edged down slightly against the Japanese currency, buying 114.55, down from 114.71. In monthly remarks released Thursday, the ECB said despite high oil prices in the euro zone, the bank was still counting on the economy to pick up in the second half of 2005. "For the full year of 2005 we expect the gross domestic product to increase by nearly 1 percent," the bank said. In addition, it said that while inflation was rising, there was no fear of a recession. The dollar was strengthened earlier in the week by expectations that the U.S. Federal Reserve will continue to raise interest rates, a move likely to attract investors and create fresh demand for dollars. The ECB, by contrast, has left its rates unchanged for more than two years. 12-nation currency bought $1.2023 in early trading Friday, up from $1.1989 in New York late Thursday.