NEW YORK - The euro managed to slow losses against the dollar on Friday as traders eyed the possibility of fresh elections in Greece.
“This is the fifth day without a firm government in place for Greece,” said Kathleen Brooks, research director at trading site Forex.com.
“If a coalition is not found soon then we could be heading back to the polls, which open up the possibility of a prolonged period of Greek political instability.”
The euro has tumbled heavily since last weekend’s election in Greece, which put pro-fiscal-reform parties in the minority.
French voters also went to the polls, electing socialist Francois Hollande. That was seen as a step away from austerity by many traders.
“Last Sunday’s elections in Europe were a refutation of a two-year effort to repair the European banking system, restore confidence in Europe’s bond markets and preserve the euro as a common currency,” said FTN Financial chief economist Chris Low.
In other currency market developments the pound fell 0.4 percent against the dollar to $1.6066.
The dollar virtually unchanged against the yen at 79.93.