The dollar slid close to a one-year low point against the euro on Friday evening after softer than expected economic data in the US.
The European single currency hit $1.2634 - the highest level since May 20, 2005.
Reports on US first-quarter gross domestic product growth, employment costs, consumer sentiment and business activity in the Chicago area, which all came in below forecasts, reinforced expectations that the US Federal Reserve was close to pausing its string of interest rate hikes.
Ben Bernanke, the new chairman of the Federal Reserve, had said on Thursday that central bank policymakers may decide to pause in hiking interest rates.
