The dollar gained slightly on the euro, building on a rally begun earlier in the week and ahead of the release of key payroll data in the U.S. later Friday, REPORTED AP. The 13-nation European currency bought US$1.3080 in early trading, barely down from US$1.3087 in New York late Thursday. The British pound also slipped to US$1.9403 against the dollar, down from US$1.9427 overnight. Against the Japanese currency, the dollar bought 118.15, down from 119.10 yen in New York. Earlier this week the dollar rallied against the euro, which had risen to nearly US$1.33 on expectations that the gap between European and U.S. rates would narrow as the Federal Reserve holds or even cuts interest rates and the European Central Bank raises them. The U.S. Labor Department is expected to release its employment report for December later Friday, which may help indicate what the Fed's next move could be and give currency markets new direction.
