The dollar was generally stronger versus other majors on Friday, as traders expressed caution ahead of a crucial no-confidence vote that could re-make the Greek government.
While reports have surfaced indicating that a deal has been reached to form a coalition that would accept the terms of Greece’s bailout, traders were too nervous to make aggressive bets on the euro.
Meanwhile, the G-20 meeting in France culminated without an agreement to fund Europe’s rescue plan, with countries outside of the euro zone unwilling to step up.
Economists fear that the EFSF does not have enough firepower to backstop Italy if the crisis spreads beyond Greece.
There was little reaction to a U.S. jobs report that was found encouraging by most economists.
the U.S. economy added fewer than expected jobs in the month of October, but the unemployment rate still showed an unexpected decrease to 9 percent, according to figures released Friday by the Labor Department.
A net of 80,000 new jobs were created in October, according to the figures, as private sector job growth was able to overcome a continued loss of government employment.
The dollar improved to $1.3750 versus the euro, up about a penny from its weekly lows. The dollar also edged up a bit versus its Canadian counterpart, briefly rising above C$1.02.
On the other hand, the buck was stuck near $1.60 versus the sterling and at Y78 versus the comatose yen.
Producer prices in Eurozone increased more than expected in September, data from Eurostat showed Friday.
The producer price index rose 0.3 percent month-on-month following a 0.2 percent decline in August. Economists were looking for a 0.2 percent rise.
The data comes a day after the European Central Bank surprised the markets with a small interest rate cut to 1.25 percent. New ECB President Mario Draghi said he expects inflation to slip below the banks 2 percent target in 2012.