TOKYO -- The dollar held firm against a basket of currencies on Friday, consolidating gains made the previous day on data showing the US economy grew at a faster pace than initially thought during the second quarter.

The US currency held firm on Friday as a wait-and-see mood prevailed in a thin market ahead of the US Labor Day holiday on Monday.

The dollar index was little changed at 77.120. The greenback slipped 0.1 percent against the yen to 109.35 yen

US gross domestic product grew at a 3.3 percent annual rate in the second quarter compared with the initial estimate of 1.9 percent, the government said on Thursday.

The dollar inched up against the euro and yen on Thursday as the upbeat GDP figures lifted some of the gloom over the US economy.

In contrast, UK data showed that British house prices posted their biggest annual fall for 17 years while retail sales saw the steepest drop since records began a quarter of a century ago.

The pound hit a two-year low of $1.8242 on the discouraging numbers before crawling back to $1.8290, unchanged from late US trading.

"The UK and European economies are both lacklustre, but the British economy is looking relatively worse," said a trader at a European bank.

"The ECB has scaled back easing expectations; as such, sterling still looks the most vulnerable," the trader said.

The dollar has benefited since late July from growing signs that economic weakness has spread beyond the United States.

The euro retreated against the dollar on the upbeat US GDP, but it remained off the six-month low hit this week after the European Central Bank doused expectations for a rate cut.

The euro was flat at $1.4707. Against the yen, the single currency dipped 0.1 percent to 160.78.