The U.S. dollar started 2009 a little higher, rising early Friday after a report showed manufacturing in Europe slowed.
The euro fell to $1.3913 from $1.4043 late on Thursday in North America, even though most U.S. markets were closed for New Year's Day.
The dollar index which tracks the currency against a basked of several counterparts, rose to 81.59 from 81.17 on Thursday.
The purchasing managers' index showed manufacturing activity in the eurozone fell for a seventh month, to 33.9 in December from 35.6 in November. The reading is the lowest in the survey's history.
Home prices in the U.K. continued to slide last month while that country's purchasing managers' index edged higher but continued to signal a severe downturn.
"Softer European and U.K. data, along with softer oil prices appear to have helped the greenback," analysts at Action Economics said.
Crude-oil futures dropped Friday as worries returned that a recessionary economy will cut into energy demand. Crude for February delivery fell 5.3% to $42.22 a barrel in early electronic trading on Globex. See oil story.
Gains by the U.S. currency may be capped ahead of the Institute for Supply Management report due at 10 a.m. Eastern. Economists expect the index will show a further contraction in U.S. manufacturing. November's reading of 36.2 was already the lowest since 1982.
