Euro ticks higher vs dollar

AP

The dollar dipped against the euro on Friday as officials from Ireland, the European Union and the International Monetary Fund negotiated a financial aid deal for the country.

Ireland appears likely to receive a loan to bolster its troubled banks, which would ease fears that Ireland's troubles would lead to a broader loss of confidence in European nations and raise borrowing costs for other weak economies like Portugal and Spain.

Uncertainty over whether creditors would suffer heavy losses on their Irish investments have weighed on the euro for two weeks, dragging it down from a nine-month high of $1.4281 reached on November 4. The prospect of a rescue for Ireland has helped the European currency regain some ground in the past several days.

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In late trading in New York, the euro edged up to $1.3672 from $1.3635.

The euro remains significantly higher than a four-year low below $1.19 it touched in early June, when Greece's debt problems had driven down the euro. A 110 billion dollar rescue for Greece helped ease its short-term funding problems.

Worries about slower growth in the US and the Federal Reserve's plan to support the economy through lower interest rates helped tug the euro higher throughout summer and early autumn despite lingering concerns about debt in Portugal, Spain and Ireland.

Elsewhere, the dollar traded mixed. The British pound fell to $1.5973 from $1.6044, while the dollar was almost unchanged at 83.49 Japanese yen from 83.45 yen late Thursday.

The US currency fell to 1.0183 Canadian dollars from 1.0214 Canadian dollars, and dipped to 0.9952 Swiss francs from 0.9965 Swiss francs.

Gold for current delivery closed at $1,352.20 per troy ounce on Friday on the New York Mercantile Exchange, down from $1,352.90 late on Thursday.

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