The euro traded higher against the dollar after a closely watched German business-sentiment indicator beat expectations, while European stocks drifted as volatile trading in Tokyo extended into a second session.
The euro rose to $1.2959, a fresh high for the day, while German Bunds trimmed gains after German business confidence picked up in May following two straight months of declines.
Separately, German consumer sentiment hit a fresh multi-year high in May, according to GfK's forward-looking consumer-sentiment index. The index rose for the fifth straight month and was stronger than expected.
Meanwhile, French business confidence in the manufacturing industry improved more than expected in May from the previous month.
The data helped to soothe European financial markets following a global rout on Thursday
"Despite the wild moves in markets this week, there is little sign that the global economic picture has suddenly changed," said Ajay Rajadhyaksha, an analyst at Barclays.
Moves in European stocks were muted as volatile trading in Tokyo extended into a second session.
Japan's Nikkei Stock Average ended up 0.9%, despite having fallen by as much as 3% in early trade. The index traded unpredictably in a range of more than 1,000 points.
Volatility in Japanese stocks mirrored moves in dollar-yen trading. The dollar fell against the yen in Asian trading, having quickly given back earlier gains.
