LONDON, Dec 5: The dollar recovered some lost ground against the euro on Friday as dealers waited with bated breath for monthly US employment data to see whether a nascent labour market recovery is on track.

The single European currency eased to $1.2067 in early European trading from 1.2085 late on Thursday in New York.

The dollar edged up to 108.25 yen from 108.19 on Thursday.

Trading was likely to be light ahead of the US non-farm payrolls employment report, said Derek Halpenny, economist at Bank of Tokyo-Mitsubishi.

The consensus is for non-farm payrolls to increase by 150,000, he said, adding that this would be consistent with two reports this week from the Institute for Supply Management as well as weekly jobless claims figures.

It should be remembered however, that 73,000 striking retail workers in California have the potential to distort the figure lower, which would present ‘dollar bears’ with yet another excuse to sell the dollar, Halpenny added.

A boost to the dollar from US President George W. Bush’s decision to lift steel import tariffs, thereby defusing the threat of global trade wars, proved somewhat fleeting.

The market simply views any good economic numbers from the US as ‘glass half empty’ — stronger-than-expected US numbers mean larger current account deficits, Gong said.

European Central Bank President Jean-Claude Trichet said Thursday that the ECB, like other central banks around the world, was pursuing a strategy aimed at achieving a “strong and stable currency”.

The euro was changing hands at $1.2067 from 1.2085 late on Thursday in New York, 130.59 yen (130.85), 0.7009 pounds (0.7015) and 1.5581 Swiss francs (1.5567). The dollar stood at 108.25 yen (108.19) and 1.2911 Swiss francs (1.2878).

The pound was at 1.7211 dollars (1.7218), 186.29 yen (186.39) and 2.2231 Swiss francs (2.2174).

On the London Bullion Market, the price of an ounce of gold stood at $400.95 against 402.25 on Thursday. —AFP