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The euro dipped to 1.2738 dollars at 2100 GMT against 1.2804 late Thursday in New York.

In late New York trade, the dollar stood 1.2256 Swiss francs after 1.2171 Thursday.

The pound was traded at 1.8594 dollars after 1.8729.

The dollar was meanwhile trading at 112.65 yen after 111.68 on Thursday.

US data showed one measure of inflation in April came to 0.5 percent from March, or 2.9 percent for the year. The core rate, which excludes food and energy, rose 0.2 percent, or an annual 2.1 percent.

"Friday’s market reaction to the personal income and spending as well as the University of Michigan sentiment announcements was nothing short of breath-taking," said Joel Ward, manager of the Joel Nathan Forex Fund. "The technicals confirm that the dollar has found a short-term bottom."

The consumer sentiment index, an indication of spending plans, inched higher to 79.1 in the final May index from the preliminary 79 earlier in the month.

Most currency watchers hold that any dollar rally is likely to prove temporary, given the market’s mounting concerns over the US current account deficit — now about 6.0 percent of gross domestic product — and expectations of a narrowing in the yield differential between the United States and its major competitors.