The dollar rose against the euro on Friday, recovering further from the previous day's seven-month low marked before the European Central Bank chief smothered market expectations for an interest rate rise in May. After the ECB kept its key overnight rate at 2.5 percent as expected on Thursday, Jean-Claude Trichet said the central bank did not share the same view as the market, which had girded for a clear signal that the ECB would tighten policy next month. With the market's gaze firmly trained on rate differentials among major currencies, the dollar had suffered against the euro all week on building expectations for such a signal from Trichet. "The market was positioned exactly against what he ended up saying," said Luke Waddington, head of forex trading at Royal Bank of Scotland in Tokyo. The market had looked for Trichet to say that "vigilance" against inflation would continue to be the watchword at the ECB. But euro bulls were disappointed by his avoidance of the word, which when used in the past had suggested further rate tightening. By 0300 GMT, the euro had slipped 0.2 percent to $1.2200 , well off a seven-month peak of $1.2333 hit before the ECB chief's remarks. Traders said stop-loss orders around $1.2180 were seen keeping the euro's fall in check for now, but if that level is pierced, the currency could drop to $1.2150. Against the Japanese currency, the euro slipped 0.2 percent to 143.65 yen, extending losses from 144.88 yen hit on electronic trading platform EBS the previous day -- the highest since the euro was launched in January 1999. The dollar was little changed at 117.75 yen .