The US Labor Department had said on Thursday that new claims for jobless benefits had jumped to a three-month high, raising doubts about the strength of the economic recovery.
The dollar came under pressure against the euro as higher US jobless benefit claims clouded the outlook for the world's biggest economy, while the single currency was supported by rising eurozone inflation.
Additionally, a leaked report from the International Monetary Fund was said to have predicted that the global economy will likely contract by 0.6 percent this year while the UK economy will contract by 3.8 percent this year and by 0.2 percent in 2010.
The dollar, meanwhile, was hurt by reduced demand as it traded at $1.3111 to the euro and the yen gained on the greenback to ¥97.945 to the US currency.
The dollar came under pressure against the euro as higher US jobless benefit claims clouded the outlook for the world's biggest economy, while the single currency was supported by rising eurozone inflation.
Additionally, a leaked report from the International Monetary Fund was said to have predicted that the global economy will likely contract by 0.6 percent this year while the UK economy will contract by 3.8 percent this year and by 0.2 percent in 2010.
The dollar, meanwhile, was hurt by reduced demand as it traded at $1.3111 to the euro and the yen gained on the greenback to ¥97.945 to the US currency.
