LONDON, May 24: The dollar edged higher against the euro and yen on Friday despite some good news from euro-zone economies as unwinded their positions ahead of an extended US holiday weekend.

The price of gold continued to rise.

The euro eased to 0.9176 dollars, from 0.9198 late on Thursday in New York, despite some good news from the French and Italian economies.

The dollar rose to 125.18 yen from 125.0 on Thursday.

French gross domestic product (GDP) rose by 0.4 per cent in the first quarter from the previous three-month period, official figures showed.

That compared favourably to the latest snapshot of the British economy, which showed that growth had stalled for the second quarter in a row in the three months to March.

Retail sales in Italy meanwhile climbed by three percent in March 2002 from the year-earlier period, the biggest jump in two years.

French GDP met analyst expectations and the Italian figures were better than expected, said Audrey Childe Freeman, an economist at the Canadian Imperial Bank of Commerce.

However, the effect has been limited for the market, all the more so given that the European Central Bank has reaffirmed that it does not expect to raise interest rates before July, she added.

The long weekend in the United States, where Monday is a public holiday, had provided a good opportunity for dealers to readjust their positions, Childe Freeman said.

The market was also awaiting a second estimate of US first quarter growth figures, though economists said it was unlikely to affect the currency market significantly.

The euro was being traded at 0.9176 dollars against 0.9198 late on Thursday, 114.82 yen (115.15), 0.6317 pounds (0.6329) and 1.4569 Swiss francs (1.4541).

The dollar was worth 125.18 yen (125.0), and 1.5883 Swiss francs (1.5784).

The pound was at 1.4523 dollars (1.4543), 181.86 yen (181.84) and 2.3060 Swiss francs (2.2960).

The price of gold on the London bullion market rose to 320.65 dollars an ounce from 317.15 dollars late on Thursday.—AFP