"We have had a steady drip of weak data from the eurozone this week and that is highlighting the differences between the US and Europe," said Commerzbank analyst Thu Lan Nguyen, adding that the United States is still showing signs of strength. Negative interest rates, quantitative easing and other attempts by the European Central Bank (ECB) to stimulate the eurozone economy are also making investment in US government debt more attractive and boosting the greenback against the euro.
The euro dropped as low as $1.0903 - its lowest since May 2017 - in overnight trading before rising back to $1.0929. The single currency has technical support around $1.0925, which could provide a floor for the time being. Sterling was the other big loser after Bank of England policymaker Michael Saunders hinted at looser monetary policy if Brexit uncertainty remained prolonged against a backdrop of disappointing global growth.
The pound weakened to a two-week low of $1.2269 on Friday as his comments raised expectations that the next move from the central bank could be a rate cut. The currency later rose back to $1.2318.