The dollar firmed against the euro and yen on Wednesday as the market waited for another batch of US data following fresh signs of weakness in the world's largest economy.
In late morning trading, the euro eased to 1.3250 dollars from 1.3257 dollars late in New York on Tuesday.
Against the Japanese currency, the dollar rose to 99.04 yen from 98.97 yen on Tuesday.
Market players were looking ahead to US data including consumer prices, housing figures and the Federal Reserve's Beige Book survey of economic conditions for fresh clues on whether the recession is easing.
"There's a raft of high profile US economic data due for release through today's session including CPI readings... so expect each of these to be under scrutiny," said CMC Markets analyst Gary Thomson.
In earlier Asian trade, the greenback was pressured in by surprise falls in US retail sales and wholesale prices, as well as uncertainty over the financial sector.
President Barack Obama said Tuesday he saw "glimmers of hope" for an economic recovery, but warned of more deep job cuts to come with little improvement in home foreclosures and a persistent credit crunch.
Fed chief Ben Bernanke also said there were "tentative signs that the sharp decline in economic activity may be slowing," but warned of the need for financial stability for a full recovery.
Bernanke also defended the dollar as the world's reserve currency, a role that has been questioned recently by China, among others.
"The dollar remains the dominant currency in terms of reserve holdings and in terms of international transactions," he said.
US retail sales dropped a surprise 1.1 percent in March after two months of gains, while wholesale prices slipped 1.2 percent, data showed Tuesday.
"The retail sales data serve as a reminder that downside surprises in the US data are still out there and that asset markets may be too optimistic on risky assets," Barclays Capital analysts wrote in a note to clients.
The dollar and the yen tend to perform well in times of economic uncertainty because they are seen as less risky bets than higher-yielding currencies including the euro.
In trading on Wednesday, the euro was changing hands at 1.3250 dollars against 1.3257 dollars late on Tuesday, 131.18 yen (131.24), 0.8880 pounds (0.8901) and 1.5123 Swiss francs (1.5090).
The dollar stood at 99.04 yen (98.97) and 1.1418 Swiss francs (1.1378).
The pound was at 1.4915 dollars (1.4894).
On the London Bullion Market, the price of gold rose to 890.72 dollars an ounce from 887.50 dollars an ounce late on Tuesday.
