The dollar gained against the euro on Friday, ahead of meetings of the Group of Eight and Group of Twenty leading industrialized nations in Toronto expected to focus on efforts to support economic growth while minding the problems that can follow oversized deficits.
The euro (CUR_EURUSD) bought $1.2308, compared with $1.2333 in late North American trading on Thursday.
The dollar index (DXY), which tracks the U.S. unit against six major counterparts, rose to 85.763 from 85.730 late Thursday.
Against the Japanese yen, the dollar () rose to ¥89.52 from ¥89.43.
"The conflict this weekend in G-20 is simple to understand," said Andrew Brenner, head of emerging markets at Guggenheim Securities. "On one side, you have all the European governments talking about austerity and worried about their credit ratings in the short term.
"On the other hand, you have the U.S. argument of expanded use of deficit spending to stimulate the world economies," he said. "We don't see how this gets resolved this weekend."
G-8 will focus its meetings Friday on security and development, especially the health of mothers and children. The G-20 sessions will discuss policies on energy, climate change and trade, as well as peace and security.
The dollar held gains in early trading Friday after the U.S. released revised data showing its economy grew 2.7% in the first quarter, down from the previous estimate of 3%. Still to come is a report on consumer sentiment this month.
China factor
One topic considered a hot point of contention for the G-20 a week ago has been removed, though. Analysts said there will be little time, at least officially, discussing the need for China to allow its currency to appreciate after the People's Bank of China said last weekend it would implement a more flexible regime for the yuan.
China's central bank set the midpoint of its daily trading range for the U.S. dollar at 6.7896 yuan Friday, a record low.
The People's Bank of China's daily official rate -- from which the greenback is permitted to rise or fall a maximum of 0.5% -- compared to a 6.8100 yuan rate set Thursday.
The U.S. dollar fell versus the euro on Thursday, after stocks headed south following a report on jobless claims and mildly better-than-expected data on U.S. durable-goods orders.
