LONDON (AFP) – The dollar rose slightly against the euro and yen on Friday as investors avoided big bets before the release of US jobs data that may indicate a slowdown in the world's biggest economy, analysts said.
In late morning trading here, the European single currency dipped to 1.3184 dollars from 1.3190 dollars late on Thursday in New York.
Against the Japanese currency, the dollar rose to 86.06 yen from 85.82 yen on Thursday.
A US government report due on Friday is expected to show that already high unemployment edged up in July as firms remain reluctant to hire in large numbers.
Market players cannot take large positions before the closely watched data but "have braced themselves for weak figures" said Mizuho Corporate Bank market economist Daisuke Karakama.
Economists believe US non-farm payrolls fell by 87,000 in July and that unemployment edged up to 9.6 percent, raising more doubts about the fragile economy recovery.
On Thursday, US government data showed new claims for US jobless benefits rose unexpectedly last week to their highest since April, intensifying concerns that unemployment could derail recovery.
The dollar earlier this week plummeted to eight-month lows around 85 yen on jitters about the pace of recovery in the world's biggest economy.
The greenback has been pressured in recent weeks on fears that a continued slowdown in US recovery could prompt the US Federal Reserve to step up "quantitative easing" -- pumping money into the economy through the purchase of assets.
"In order to be a saviour for the dollar, private payrolls would need to rise by more than 90,000," said analyst Kathy Lien of Global Forex Trading.
"Otherwise, the market's fears about a slower recovery will be verified, giving traders a stronger reason to dump the dollar," she said.
The euro was meanwhile downbeat a day after positive German economic data and upbeat comments about the eurozone recovery from European Central Bank head Jean-Claude Trichet.
In trading in London, the euro changed hands at 1.3184 dollars against 1.3190 dollars on Thursday, at 113.46 yen (113.22), 0.8313 pounds (0.8298) and 1.3792 Swiss francs (1.3795).
The dollar stood at 86.06 yen (85.82) and 1.0461 Swiss francs (1.0453).
The pound was at 1.5857 dollars (1.5893).
On the London Bullion Market, the price of gold climbed to 1,194.47 dollars an ounce from 1,192.50 dollars an ounce on Thursday.