NEW YORK ? The dollar on Thursday firmed sharply against the euro amid worries about weak US economic data and a looming key jobs report that sent investors scurrying to the safe-haven currency.
The euro was traded at $1.3580 around 2200 GMT, down from $1.3691 late Wednesday in New York.
The dollar also rose against the Japanese currency, fetching 89.10 yen, up from 88.46 yen on Wednesday.
The euro fell as low as $1.3552 a day after topping $1.37 for the first time in two weeks.
"The US dollar traded higher against all of the major currencies ahead of Friday's non-farm payrolls report," said Kathy Lien at Global Forex Trading.
"The strength of the dollar reflects the market's relief that any increase in job losses in February will be reversed in March."
Lien said the market likely would downplay the numbers because two severe snowstorms in the US northeast last month may have increased job losses.
"Given the possibility of weather-related distortions to the report, forex traders may not be all that discouraged by a weak number unless job losses exceed 100,000," she said.
The consensus forecast is for 63,000 job losses and a rise in the unemployment rate to 9.8 percent from 9.7 percent in January.
Investors, unsettled by news that pending home sales in the United States had unexpectedly fallen in January and factory orders rose less than expected, sought out the safe-haven dollar at the expense of currencies seen as riskier bets, such as the euro.
Pending home sales fell 7.6 percent in January compared with December, suggesting that the troubled US housing market, which helped trigger the global financial crisis, had not yet stabilized.
Traders were also on edge as they awaited what they hope will be a concrete European initiative to help Greece through its crippling debt and public deficit crisis.
"The sovereign [Greek] debt problems remain the key drag on euro rallies," said Michael Hewson of CMC Markets.
The Greek government bowed to eurozone pressure and announced sweeping new austerity measures on Wednesday, with Prime Minister George Papandreou stressing it was now time for Greece's European partners to come forward with concrete support.
"Despite [Wednesday's] clarification on their austerity package, the Greeks have failed to settle market nerves," said Owen Ireland of ODL Securities.
The market shrugged off widely expected decisions by the Bank of England and the European Central Bank to leave their benchmark interest rates unchanged.
In late New York trading, the dollar climbed to 1.0766 Swiss francs from 1.0675 late Wednesday.
The pound was at $1.5028 after 1.5094.
