Dollar hits near 6-week high vs. euro

NEW YORK (CNNMoney.com) -- The dollar rose to near a six-week high against the euro Friday after the government reported fewer than expected job losses for July.

The euro fell as low as $1.5515 - the lowest level since June 24, according to data from Forex Capital Markets - but then pared some losses.

Most recently, the euro bought $1.5545, down from $1.5603 late Thursday. The greenback lost ground against the yen, buying ¥107.64, down from ¥107.91 a day earlier.

Jobs: The Labor Department said employers cut 51,000 jobs last month, marking the seventh straight month of job losses.

But economists polled by Briefing.com had feared worse and were expecting a loss of 75,000 jobs.

"I think overall it was kind of a pleasant surprise," said Tom Benfer, vice president of foreign exchange at the Bank of Montreal. "The market was bracing for a potentially poor number and it was only 51,000."

Meanwhile, the unemployment rate rose to 5.7% from a reading of 5.5% in June. The jobless rate was forecast to rise to 5.6%

European economy: The euro was also weakened by a negative report on manufacturing activity. The euro-zone's purchasing managers index report indicated contraction in the region's economy during the month of July.

"There is a perception that the European economy is slowing down," said Benfer.

The euro was also lower against the yen Friday.