By Deborah Levine
NEW YORK (MarketWatch) -- The U.S. dollar recovered most of its losses on the day against the euro, which had pushed to a new 8-month high above $1.40 on Thursday, after Jean-Claude Trichet, president of the European Central Bank, was deemed not excessively bearish and traders adjusted positions ahead of Friday's U.S. jobs report. Runs to key levels in the euro versus the dollar and British pound "might have taken rallies a bit too far today, and once probed, prices fell back," said David Watt, senior fixed income and currency strategist at RBC Capital Markets. The dollar index (DXY 77.31, -0.08, -0.10%) , a measure of the U.S. unit against a basket of six major currencies, traded at 77.260, after falling to 76.906 earlier but still down slightly from 77.397 in late New York trading on Wednesday. The euro (EURUSD 1.3932, +0.0003, +0.0215%) rose to $1.3948, versus $1.3934 Wednesday. It touched $1.4028 during Trichet's press conference.
