The dollar posted the biggest weekly gain against the euro in more than a month on signs the economy is weathering the housing slump.

Traders reduced bets that the Federal Reserve will cut borrowing costs this month after the U.S. government revised employment data for August to an unexpected increase. European Central President Jean-Claude Trichet signaled yesterday that policy makers won't raise borrowing costs anytime soon.

The dollar traded at $1.4134 per euro at 4:22 p.m. in New York, compared with $1.4138 yesterday. The U.S. currency rose 0.9 percent this week for the biggest gain since mid-August. The yen fell 0.4 percent to 116.92 per dollar and 0.3 percent to 165.26 per euro. Japan's currency decreased 1.8 percent against the dollar this week, the most since June 2006.

Non-farm payrolls grew by 110,000 after an 89,000 increase in August, the Labor Department said today in Washington. Revisions added 118,000 workers to payroll figures previously reported for July and August. The unemployment rate rose to 4.7 percent, as economists forecast.

The dollar on Sept. 7 plunged to the lowest against the euro in a month after the government said the U.S. lost 4,000 jobs in August. The central bank on Sept. 18 reduced its target rate for overnight lending between banks a half-percentage point to 4.75 percent to sustain U.S. growth.