Towards 17H00 GMT (18H00 Paris), the euro bought 1.2679 dollars against 1.2904 Thursday evening.
The euro was down facing the Japanese currency at 121.39 yen against 122.90 yen the previous day.
The greenback advanced to face the Japanese currency to 95.53 yen against 95.30 Thursday evening.
After a week of rising prices which saw back above $ 1.30 Tuesday, the euro has finally left behind by the greenback.
While the euro area is sinking into recession, the unemployment rate rose to 7.7% in October, its highest level in almost two years, while inflation has slowed sharply in November.
Markets now expect a significant decline in interest rates from the European Central Bank (ECB) next Thursday, from 0.75 to 1 percentage point. The ECB has recently lowered its main rate by half a percentage point, after reducing Oct. 8, and it is now at 3.25%.
The ECB President Jean-Claude Trichet, has reiterated ready Wednesday to a further decline in rates, without further details.
"When the figures are worse than expected, the monetary policy must be more ambitious than those anticipated by the market" said Herve Goulletquer Calyon.
"The figures published next week should again pointing in the direction of a global economy in a state of weakness" added the analyst.
Meanwhile, rumors are growing about a further decline in U.S. rates, currently set at 1%.
Such a drop would make the dollar less attractive, even if the markets have used the greenback as a safe haven in recent times because of the financial storm.
"The role of risk aversion as the main compass of traders is rivaled by the issue of easing monetary policy. Recently, while the yen (other favored currency in a context of fear of investors, ie) remained strong, the dollar has weakened against the euro. But this should not last, because of market disappointment over what they see as a lack of responsiveness of the ECB considered Herve Goulletquer.
The British currency was up against the euro at 82.64 pence per euro, down against the dollar at 1.5375 dollar.
The Swiss currency advanced against the euro at 1.5454 Swiss francs to one euro against the dollar fell to 1.2161 Swiss francs to the dollar.
The ounce of gold was 814.50 dollars fixing evening against 814 dollars the previous day.
The Chinese yuan closed at 6.8346 yuan to one U.S. dollar against 6.8281 yuan yesterday. Daily Finance and Investment Tips / Make Money by Learning
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