NEW YORK (AP) -- The euro jumped to a six-week high against the dollar after a European official said that Greece is close to reaching a deal with creditors to lower its debt.
Traders also sold the dollar after the government said that the U.S. economy grew at a slower pace in the fourth quarter than economists had expected.
The euro rose to $1.3208 late Friday from $1.3104 late Thursday. It rose as high as $1.322, its highest point since Dec. 13.
European Monetary Affairs Commissioner Olli Rehn said that a Greek debt deal may be reached by the weekend. His comments were made at the World Economic Forum in Davos.
Greece needs to reach a deal with its creditors to receive its next installment of bailout cash and avoid defaulting on its debt. A default could hurt Europe's financial system and trigger a financial panic around the world.
The euro rose even though ratings agency Fitch said Friday that it is downgrading the credit ratings of Italy, Spain, Belgium, Cyprus and Slovenia. Earlier in the month, Standard & Poor's downgraded nine euro zone countries.
Across the Atlantic, the U.S. government reported that the economy grew at a 2.8 percent annual rate in the fourth quarter. Economists believe growth would need to be much stronger to sharply reduce unemployment.
The dollar was weaker against most other currencies Friday.
The British pound rose to $1.5724 from $1.5688. The dollar fell to 76.72 Japanese yen from 77.49 Japanese yen, to 0.9129 Swiss franc from 0.9205 and to 1.0012 Canadian dollar from 1.0014 Canadian dollar.
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