The dollar dipped against the euro on Friday, reversing some of its sharp gains the previous session following weak U.S. jobs data which dampened hopes that the global economy is poised to recover.

The dollar rose versus the euro and fell against the yen Thursday as a report showing a larger-than-expected drop in U.S. non-farm payrolls in June, renewed concerns about the economic recovery's pace.

The dollar fell to a three-week low against the euro Wednesday, pressured by news China has asked to debate proposals for a new global reserve currency at next week's Group of Eight summit.

Japanese business confidence pulled back from a record low hit three months ago, the Bank of Japan's tankan survey showed, in its first rise in two and a half years.

The dollar gained against a basket of currencies Tuesday after a report showing an unexpected drop in U.S. consumer confidence for June, prompting investors to seek shelter in the greenback.

Japan's jobless rate rose to a new 5-1/2-year high in May and job availability sank to record low but government stimulus efforts prompted a modest rise in household spending.

The pace of contraction in Japanese manufacturing activity slowed for a fifth straight month in June, a survey showed on Tuesday, as companies gradually recover from Japan's deepest postwar recession.

The dollar fell against the euro on Monday and the yen weakened as a rise in oil prices and U.S. stocks reduced safe-haven demand for both currencies.

Japanese industrial output jumped 5.9% in May as car and electronics production recovered from a deep slump, but analysts said the outlook remained murky once the effects of government stimulus wear off.

The U.S. dollar fell broadly Friday after China renewed its call for a super-sovereign reserve currency and as improving appetite for risk dented the greenback's safe-haven allure.

Japanese consumer prices fell a record 1.1.% in the year to May, with falling demand increasingly blamed as the country's second bout of deflation in less than two years deepens.

Japanese Finance Minister Kaoru Yosano reiterated his support for Washington's strong-dollar policy on Thursday, saying it benefits not only the United States but countries around the world.

The dollar fell against most major currencies Thursday, tracking the change in U.S. stocks, which rose as investors expressed optimism that economic deterioration was ebbing.

Bank of Japan policy board member Seiji Nakamura on Wednesday warned that corporate financing conditions could remain severe despite recent improvements, in a sign he may be in favor of extending a deadline for measures to ease credit strains.

Japan's exports continued to tumble in May, with even shipments to China showing little sign of improvement, suggesting that hopes for a quick recovery in global demand may be premature.