NEW YORK: The dollar slipped against the euro on Friday as traders anticipated a European Union summit would result in a deal to stem the continent's debt crisis.
The European single currency bounced to $1.3896 from $1.3772 in New York late Thursday. The dollar eased to 76.29 yen from 76.78 yen.
"Expectations that Europe may be a matter of days away from unveiling a meaningful plan to stem the debt crisis bolstered market sentiment, reducing demand for the US currency," said analysts at Travelex.
"The major averages all hold gains in excess of one percent as markets see a strong opening surge in anticipation that this weekend's European Union summit will provide some answers as to how Europe plans to combat its debt crisis," said analysts at Briefing.com.
European finance ministers huddled Friday to try to nail down debt funding for bailed-out Greece, a restructuring of Greek debt and help for the banks who will inevitably lose out as a result.
If that much can be settled, then leaders will have to tackle the absolutely crunch issue of the eurozone's debt rescue mechanism and the bloc's economic governance, with the latter intended to reduce the need for the former.
The pound rose to $1.5950 from $1.5790 while the dollar fetched 0.8821 Swiss francs versus 0.8939.
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