The dollar rose against the euro on Friday, recovering from an early swoon after better-than-expected U.S. durable goods data for April eased investor concerns about the U.S. economy.

Orders for durable goods, which range from toasters to aircraft, increased 3.3 percent last month, the Commerce Department said on Friday, beating the consensus forecast for a rise of 1.5 percent. The department also revised prior readings for orders to show a smaller decline in March than previously estimated.

(Read More: Despite Overseas Weakness, US Durable Goods Rise)

The yen overall extended gains from the previous session, as weak equity markets helped the safe-haven currency recover after recent declines.

"The dollar got a partial boost but is still heavy on the yen on concern about volatility in Japanese financial markets," said Boris Schlossberg, managing director of FX strategy at BK Asset Management in New York.