The dollar declined slightly against the euro on Friday, mostly holding on to gains a day earlier on a report showing strength in the U.S. labor market and rising concern in Europe over sharp shifts in currency values.

The dollar traded at $1.5696 per euro at 12:50 p.m. in Tokyo from $1.5682 in New York late yesterday. The U.S. currency was stead at 104.19 yen from 104.26 yen yesterday. The Japanese currency was at 163.54 per euro from 163.45 yesterday.

The U.S. Labor Department said on Thursday that jobless claims decreased by 33,000 to 342,000 in the week which ended April 19, signaling resilience in the labor market. Analysts had expected a slight gain in claims.

Meanwhile, European Central Bank President Jean-Claude Trichet said on Thursday that he had concerns over the implications of fluctuations in currency exchange and their impact on financial stability. He also indicated that the ECB's current interest rates would contribute toward the goal of price stability.

European union