The dollar edged higher against the euro on Friday after a government report showed US employment grew more than expected in November, but the less-encouraging details limited gains. The dollar had soared immediately after the data as the stronger-than-expected headline number stoked speculation the Federal Reserve could opt for a smaller stimulus program next week.

But it pared gains versus the euro and turned slightly lower against the yen as traders scrutinized the details. The euro fell to a session low of $1.2878 on Reuters data, matching the low set on November 28. It was last down 0.2 percent at $1.2936. The common currency pared losses in late morning trade, with traders citing a Market News International report that said senior European Central Bank Executive Board members, including President Mario Draghi and Bundesbank President Jens Weidmann, opposed a rate cut supported by the majority at the ECB's most recent policy meeting on Thursday.

The euro lost 0.8 percent against the dollar on Thursday after ECB President Mario Draghi said policymakers had discussed cutting borrowing costs and slashed growth and inflation forecasts for the euro zone. The dollar rallied as high as 82.82 yen on Reuters data, matching a near eight-month high set on November 22. It was last at 82.36 yen, down 0.1 percent on the day.

Copyright Reuters, 2012