LONDON - The dollar struggled against leading currencies on Friday with concerns about growth prospects in the United States still lingering.
The single European currency rose to 1.3061 dollars in early European trading, from 1.3050 late on Thursday in New York.
The dollar fell to 106.38 yen against 106.90 on Thursday.
"Given the lack of US data today we suspect that it will be relatively quiet in the currency markets as consolidation takes place," HBOS economist Naeem Wahid said.
The dollar had turned higher Thursday after a sharp jump in the monthly Philadelphia Fed manufacturing index provided fresh evidence that the US economy was growing solidly.
Also helping the picture for the greenback, US initial jobless claims dropped to 296,000 in the week that ended April 16, the lowest level since the first week of February and well below expectations of about 330,000.
However markets remained concerned about US growth prospects, especially against a backdrop of high oil prices and rising inflationary pressures, analysts said.
"The numbers on the Philly Fed were strong, both in terms of headline sentiment and in the detail on orders and employment, but in isolation they would hardly constitute a catalyst for upward revisions to US gross domestic product forecasts," Calyon economist Daragh Maher said.
"Instead, it was their impact on market psychology that was critical, providing some perspective on the degree of economic weakness."
Accelerated manufacturing growth in Philadelphia this month caused the Philly Fed headline index to more than double to 25.3 from 11.4 in March.
Sterling was steady after data showed that Britain's economy slowed slightly ahead of national elections next month.
Gross domestic product growth rose by 0.6 percent in the first quarter of 2005 from the previous three months, compared with 0.7 percent over the final quarter of last year.
The euro was changing hands at 1.3061 dollars against 1.3050 late on Thursday in New York, 139.96 yen (139.57), 0.6835 pounds (0.6838) and 1.5449 Swiss francs (1.5449).
The dollar stood at 106.38 yen (106.90) and 1.1823 Swiss francs (1.1822).
The pound was being traded at 1.9116 dollars (1.9088), 203.28 yen (204.03) and 2.2598 Swiss francs (2.2571).
On the London Bullion Market, the price of an ounce of gold stood at 433.70 dollars against 434.00 dollars late on Thursday.
04/22/2005 10:38 GMT