The U.S. dollar rose against most major currencies on Friday after a new report showed that economy in the euro zone contracted for the fourth consecutive quarter.
Eurostat, the Statistical Office of the European Communities, reported on Friday that gross domestic product (GDP) in the 16-nation euro area declined by 2.5 percent from the previous quarter in the first three months of 2009.
The loss was the largest decline since records began in 1995, larger than analysts' forecast. The overall Eurozone performance was dragged down by a fall of 3.8 percent in German GDP, though plunging output was widespread across the region.
Eurostat said in another report that euro area annual inflation remained at a record low of 0.6 percent in April, unchanged compared with March.
The reports refreshed worries over economic outlook and deflation risk in Europe, lifting expectations that the European Central Bank would go further with quantitative easing. Risk aversion increased in foreign exchange trading as investors' optimism about economic recovery was hurt.
The euro bought 1.3476 dollars in late New York trading compared with 1.3652 dollars it bought late Thursday. The pound fell to 1.5160 dollars from 1.5236.
The dollar rose to 1.1796 Canadian dollars from 1.1697, and rose to 1.1232 Swiss francs from 1.1033. It fell to 95.07 Japanese yen from 95.71.
