The dollar gained against most currencies other than the yen Friday after government data showed the U.S. economy contracted 6.2% in the fourth quarter, more than market expectations.
"These figures are just awful," said Matt Esteve, currency trader at Tempus Consulting in Washington. "This shows the weak state of the world's largest economy. It will have to boost risk aversion and that will keep sustaining the dollar, in particular against the euro."
The euro was down 0.9% against the dollar at $1.2614 , sterling fell 1.2% to $1.4126, while the dollar gained 0.8% against the Swiss franc to 1.1736 francs.
The yen gained sharply, snapping a string of losses that took it to three-month lows this week against the dollar, with traders citing month-end flows even as weak Japanese data paints a bleak picture of their economy.
The dollar was last down 1.5% against the yen at ¥96.94, close to a session low of ¥96.88.
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