NEW YORK - The dollar was up slightly on Friday but on track for its biggest monthly drop in a decade as concerns that an increase in U.S. coronavirus cases will slow the rebound in the economic recovery.

Confidence in the dollar was undermined further after U.S. President Donald Trump on Thursday raised the possibility of delaying the Nov. 3 presidential election.

The dollar mostly held gains after data on Friday showed U.S. inflation-adjusted consumer spending has pulled out of April's deep hole but remains below its pre-pandemic level.

On Thursday, advance gross domestic product (GDP) data showed contraction of an annualised 32.9% in the second quarter, the quickest pace since the Great Depression.

The dollar index slid as low as 92.539 earlier, the lowest since May 2018, but has recovered to trade up 0.32% at 93.039.

It has fallen more than 4% in July, which would be the biggest monthly drop since September 2010, with most of the drop coming in the last 10 days as new cases of coronavirus surged across several U.S. states and some recent data pointed to an economic recovery losing steam. 

"Absent a risk-off episode, it looks as if the dollar wants to just pull back a bit, and the euro has been prominent," said Quincy Krosby, chief market strategist at Prudential Financial in Newark, New Jersey.

The euro was at $1.1833, down 0.11% on the day.

The currency was little moved by data showing the euro zone economy recorded its deepest contraction on record in the second quarter while the bloc's inflation unexpectedly ticked up in July. 

The euro traded below $1.10 as recently as May, but after European Union leaders agreed this month to a 750 billion euro economic recovery fund - while also taking on debt jointly in a major boost to regional cooperation - many investors have warmed to the currency again.

On a trade-weighted basis, the euro is at its highest since 2014.

The dollar's drop this month has created space for a rebound in currencies hit hard in March, when investors rushed for the safety of the greenback as panic over the coronavirus gripped markets.

Against the yen, the dollar earlier hit a 4-1/2-month low but last stood at 105.71, up 0.95%.

The British pound surged to $1.3156, up 0.48% on the day.

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Currency bid prices at 10:35AM (1435 GMT) Description RIC Last U.S. Close Pct Change YTD Pct High Bid Low Bid

Previous Change

Session Euro/Dollar EUR= $1.1833 $1.1846 -0.11% +5.56% +1.1908 +1.1803 Dollar/Yen JPY= 105.7100 104.7200 +0.95% -2.89% +105.7700 +104.1900 Euro/Yen EURJPY= 125.09 124.06 +0.83% +2.57% +125.2000 +123.8500 Dollar/Swiss CHF= 0.9112 0.9087 +0.28% -5.86% +0.9129 +0.9057 Sterling/Dollar GBP= 1.3156 1.3093 +0.48% -0.78% +1.3169 +1.3081 Dollar/Canadian CAD= 1.3427 1.3422 +0.04% +3.40% +1.3439 +1.3404 Australian/Doll AUD= 0.7169 0.7193 -0.33% +2.11% +0.7227 +0.7162 ar Euro/Swiss EURCHF= 1.0785 1.0768 +0.16% -0.62% +1.0798 +1.0755 Euro/Sterling EURGBP= 0.8994 0.9045 -0.56% +6.39% +0.9063 +0.8981 NZ NZD= 0.6659 0.6698 -0.58% -1.14% +0.6715 +0.6651 Dollar/Dollar Dollar/Norway NOK= 9.0685 9.0746 -0.07% +3.30% +9.0871 +9.0278 Euro/Norway EURNOK= 10.7335 10.7520 -0.17% +9.10% +10.7825 +10.7140 Dollar/Sweden SEK= 8.7079 8.6902 +0.04% -6.84% +8.7230 +8.6431 Euro/Sweden EURSEK= 10.3044 10.2998 +0.04% -1.57% +10.3155 +10.2740

(Reporting by Caroline Valetkevitch; Additional reporting by Thomas Wilkes in London and Hideyuki Sano in Tokyo; Editing by Jan Harvey, David Holmes and Jonathan Oatis) ((caroline.valetkevitch@tr.com))