The euro has lost close to 1pc so far this week and is on track for its worst two-week performance since mid-2018.
Euro zone gross domestic product grew 0.1pc quarter-on-quarter in the fourth quarter, in line with forecasts. Year-on-year growth was weaker than expected, at 0.9pc, although employment grew more than expected.
The German economy stagnated, data also showed, renewing fears of a recession.
"When I think of the euro since the start of the year and in particular since the start of the month I think of `heavyweight', as it has dropped like a stone compared with the dollar," said Commerzbank analyst Antje Praefcke.
The euro fell to $1.0827 overnight before settling at $1.0841, down on the day. It was unchanged after the euro zone data was released.
The euro has been buffeted by signs of a slowdown in Germany and ongoing demand for dollars. Against the Swiss franc, the euro weakened to another four-and-a-half-year low of 1.060 francs before recovering.
Concerns about the extent of the coronavirus in China after a sharp increase in new infections and deaths has supported both the safe-haven yen and the dollar.
The dollar index, which measures the currency against a basket of six major currencies, rose to its strongest since October. It has risen 0.4pc this week, after gains of 1.3pc last week.
Traders are now waiting for a batch of U.S. data later in the day, including retail sales and industrial production.
The yen edged up to 109.81 per dollar, following a 0.25pc gain the previous session.
China's onshore yuan slipped to 6.9868 per dollar. The offshore yuan was last at 6.989, following a 0.2pc decline on Thursday.
Sterling consolidated around $1.3030 mark. It gave back some of its gains after rising on Thursday when Rishi Sunak, an ultra-loyalist to Prime Minister Boris Johnson, was named finance minister.
His appointment raised expectations the upcoming budget would increase public spending to boost the economy following Britain's Jan. 31 withdrawal from the European Union.
Kit Juckes, an FX analyst at Societe Generale, said the new finance minister's appointment raised the bar for the actual budget, "since markets now price in easier policy than they did yesterday morning."
The euro strengthened 0.1pc against the pound to 83.195 pence , but that left the British currency still close to a two-month high.