The euro rebounded against the dollar late Friday after hitting a two-year low earlier in the day.

Traders bought the euro after China's latest economic data met economist's expectations and Italy held a successful bond auction.

China said its economy grew by 7.6 percent in the second quarter, down from the previous quarter's 8.1 percent.

Italy sold $4.3 billion of three-year bonds and paid a lower interest than it did at a similar auction in June. That's a sign that investors are more confident in the country's finances.

The euro rose to $1.2241 late Friday from $1.2195 late Thursday. The euro as low as $1.2161 in morning trading, its lowest point against the dollar since July 1, 2010.

The dollar also weakened against most other major currencies.

The British pound rose to $1.5570 from $1.5428.

The dollar fell to 79.27 Japanese yen from 79.31 yen, to 0.9812 Swiss franc from 0.9846 Swiss franc and to 1.0141 Canadian dollar from 1.0186 Canadian dollar.