SINGAPORE, June 23 Reuters The euro fell after the bloc39;s business growth virtually stalled this month, as the dollar drew support from a bout of risk aversion on Friday and hawkish comments from global central banks, including the Federal Reserve.

The dollar index , which measures the currency against six others, was up 0.56 at 102.95, reversing three straight weeks of losses. The euro slid 0.85 to 1.0859, heading for its biggest oneday fall since March.

The latest data showed euro zone business growth virtually stalled in June. A downturn in manufacturing deepened, while activity in the bloc39;s dominant services sector barely expanded, as overall demand fell for the first time since January.

Business activity in Germany slowed in June as growth in the services sector decelerated and a decline in manufacturing worsened, while French business activity also contracted this month for the first time in five months.

Sterling struggled to hold gains from a largerthanexpected 50basispoint rate rise from the Bank of England BoE on Thursday in response to sticky inflation, fuelling fears about an impending recession in the UK.

While higher rates are typically supportive of currencies, the risk that they will trigger an economic downturn has pushed some investors to seek safehaven assets including the U.S. dollar.

The pound fell 0.31 to 1.2710 and was on track for a weekly loss of nearly 1, snapping three straight weeks of gains.

With the Bank of England set to raise…