NEW YORK (AP) — The dollar rebounded on Friday as a report showed stronger-than-anticipated job gains in the United States and investors once again worried about European debt levels.

The euro, used by 16 European countries, fell to $1.4045 in late New York trading from $1.4209 late Thursday. On Thursday, the euro struck a nine-month high of $1.4281.

Despite Friday's jump, the dollar has been declining steadily for months — down about 10 percent versus the euro since late August — because of investor expectations that the Federal Reserve would make a move to prop up the weak US economy.

The central bank on Wednesday said that it would buy $600 billion worth of bonds over several months, triggering a two-day sell-off in the dollar. The Fed's move could prompt more borrowing and spending in the US, but it makes the dollar a less-attractive investment because of lower interest rates.

The jobs report on Friday showed much bigger gains than economists had expected, and private employers added the most positions since April. The Labor Department said the economy generated 151,000 jobs in October, while the unemployment rate remained at 9.6 percent.

While hiring still remains sluggish, the report is a step in the right direction for the US economy. At the same time, a decline in retail sales in Europe, a drop in German industrial orders and renewed concerns about high debt loads and slow growth in Europe's weaker countries — Ireland, Portugal and Greece — pressured the euro on Friday.

The dollar had gotten a big leg up in spring against the euro because of fears that high debt in certain countries could force the break-up of the currency union. A huge aid package helped assuage those worries, but now investors are concerned about the prospect of big government debt restructurings in the weaker countries, said Brown Brothers Harriman analyst Win Thin.

The dollar didn't just gain against the euro. The British pound slipped to $1.6189 from $1.6284. On Thursday, the pound rose to nearly $1.63, its highest level against the dollar since January.

The dollar rose to 81.32 yen from 80.66 yen. It is still not far off from 79.75 yen, the dollar's weakest point against the Japanese currency since World War II, struck in April 1995.

Against six major currencies, the dollar rose a sharp 0.9 percent on Friday. But Friday's gain is just a small reversal after months of declines. The dollar is still down eight percent against this group of currencies since the end of August. Economists largely expect the dollar to continue to drop against currencies of developing economies, although its decline versus the euro may be coming to an end as worries about European countries' debt flare up again.

On Friday, the Australian dollar also hit its latest high against the US dollar. The Australian currency is now worth more than the dollar because of Asian demand for the country's iron ore and other commodities. The Australian dollar reached that threshold last month for the first time since 1983, when it became freely traded.

The dollar also slipped Friday to 1.0004 Canadian dollars from 1.0034 Canadian dollars, briefly dipping below one Canadian dollar. The Canadian dollar's growing strength versus the US currency means US real estate is cheaper for buyers from Canada, while Canadian imports are more expensive for US consumers.