The dollar shot higher versus the euro Friday morning as investors worried that the "stress tests" on European banks were not stringent enough.

The results of the tests will be released Friday at noon EDT.

Regulators decided to release the stress tests for 91 European banks to try and reassure investors worried about the hit to the banking system from the deteriorating economic growth and debt crisis in several countries that use the euro.

In morning trading in New York, the euro slid to $1.2830 from $1.2895 late Thursday. It had earlier in the session risen to nearly $1.30.

There are reports that the tests will not factor in worst-case scenarios of a default on sovereign debt by Greece, Portugal or Spain, and will calculate the costs of a debt restructuring in a way that doesn't fully capture the damage to a bank's balance sheet, said currency analyst Win Thin of Brown Brothers Harriman.

"Questions about the objectivity of the tests will raise doubts over the solvency of the banks," said Ashraf Laidi, chief market strategist of CMC Markets in London, in a research note.

In other trading Friday, the British pound rose to $1.5355 from $1.5267 after the government said the British economy grew 1.1 percent in the second quarter, stronger growth than had been expected.

The dollar rose to 87.23 Japanese yen from 87.01 yen and gained to 1.0515 Swiss francs from 1.0433 francs. It also rose to 1.0415 Canadian dollars from 1.0368 Canadian dollars.