The dollar fought back against the euro and emerged from an unusually tight trading range versus the yen on Friday, helped by data showing the U.S. economy grew faster than previously reported in the fourth quarter.
Also, while European Union officials agreed on a permanent bailout fund at a meeting in Brussels, no concrete steps were taken to bail out Portugal, raising concerns about the region’s sovereign debt problems.
The buck improved to $1.4060 versus the euro, staying away from a 4-month low of $1.4247 set earlier this week.
The dollar rose to a weekly high of Y81.50 versus the yen, following five straight days virtually no movement. Traders have been reluctant to establish new positions, fearing another big move will push Japan to further intervene in the currency markets.
Last week, the dollar touched a record low of Y76.30 versus the yen, before the Group of Seven stepped in to weaken it.
The dollar hit a weekly high of $1.6010 versus the sterling, edging further from this week’s yearly low of $1.64.
The U.S. economy performed somewhat better in the last quarter of 2010 than had previously been estimated, according to figures released by the Department of Commerce on Friday.
According to revised figures, the U.S. gross domestic product, or GDP, grew by 3.1 percent in the fourth quarter of 2010, up from the previous estimate of 2.8 percent. The upward revision came in line with economist estimates.