The dollar gained sharply against the euro on Friday after Citigroup reported results which bolstered speculation that financial markets are at or near the bottom of the credit crisis.

The dollar rose to 1.5807 at 4:39 p.m. in New York compared to $1.5908 late Thursday. The U.S. currency also rose against the yen as it traded at 103.70 yen from 102.48 yesterday. The euro was up to 163.91 yen versus 163.03 yesterday.

Citigroup reported that it lost $5.1 billion in the first quarter tied to losses in the housing and credit markets. However it also said that its revenue fell to $13.2 billion, higher than a consensus estimate of $11.1 billion, according to a Bloomberg poll of analysts. Citigroup shares closed up 4.5 percent. The broad S&P 500 index rose 1.8 percent.

The dollar also gained against a basket of six other major currencies. The Dollar Index was up to 72.228 from 71.680 Thursday.