NEW YORK (AFP) - The dollar moved slightly against major currencies after key US ISM data on manufacturing was in line with expectations, as the market remained cautious on the prospects for the US economy.
The single European currency fell to 1.2411 dollars at 2130 GMT from 1.2435 late Thursday in New York.
The dollar rose to 110.52 yen from 110.02 Thursday.
The Institute for Supply Management reported that US factory activity had eased just slightly, with its headline index falling to 58.5 percent in September from 59.0 in August, suggesting that the US economic recovery was gaining some traction.
Construction spending in the United States by 0.8 percent in August, double the rate expected by analysts.
"This report was not as strong as the Chicago PMI report for September. Nevertheless, the level of this index is consistent with continued very solid growth in manufacturing activity," Bear Stearns analysts said in a statement.
The solid report caused only a very limited rise in the dollar, however, with the market still remaining cautious on the outlook for the US economy amid fears over the impact of higher oil prices.
"We continue to view levels of US yields as low relative to our own expectations for growth, inflation and Fed (Federal Reserve) policy in the coming months, and are thus cautious about the prospects for the dollar to break out of its broad consolidation range and resume its structural downtrend at this time," said Daniel Katzive, currency analyst at UBS.
Investors are also unwilling to adjust positions ahead of the Group of Seven meeting this weekend, analysts said.
In late New York trade, the dollar was changing hands at 1.2495 Swiss francs against 1.2455 Thursday.
The British pound was at 1.7991 dollars from 1.8117 late Thursday.