LONDON, March 28: The dollar was under pressure against the euro on Friday but held steady against the yen after worse-than-expected data raised fresh concerns about the health of the Japanese economy, the world’s second largest.

Dealers said the euro, which struck a record high against sterling, was boosted early in the day by comments from European Central Bank policymaker Axel Weber that reinforced the view the ECB will not cut interest rates soon.

A series of mostly very weak US data this week had bolstered expectations that US interest rates can only fall further, once again undermining support for the dollar as the economy slows.

Figures on Friday showing US consumer spending stalled in February while inflation eased despite rising oil and energy prices only confirmed that view, dealers said.

In late European trade, the European single currency was at $1.5755, off early highs above $1.58 and down from $1.5778 in New York late on Thursday.

The dollar was at 99.56 yen, coming off highs above 100 yen and down from 99.59 on Thursday.

Japan said earlier on Friday that its jobless rate rose for the first time in five months as core inflation hit the fastest pace in a decade.

Companies were hiring fewer workers as they grappled with rising costs and falling exports to the ailing US economy.

“We’re not seeing a sharp deterioration, but there are some signs of a softening in employment growth, particularly for small firms which have been hit by rising costs,” said Lehman Brothers economist.

On the London Bullion Market, the price of gold fell to $934.25 per ounce, from $946.75 late on Thursday. —AFP