(MENAFN– ecpulse)
The U.S. dollar stabilized against the Euro and the yen on Friday as fears over the Eurozone banking turmoil receded with Portugal’s largest lender reassuring investors about its financial stability.
Banco Espirito Santo said on Thursday night that loan losses to the troubled empire of its founding family would not put the bank at risk of running short of capital. That eased some concerns.
The dollar weakened to nearly two-month lows against the yen on Thursday as investors worried about contagion and sought out safe haven investments.
The dollar was steady at 101.319 yen and little changed against the euro at $1.36081.
The dollar rose 0.09 percent against a broad basket of currencies to 80.22, according to the dollar index.
The U.S. dollar has been largely stuck in a wall against the euro and the yen in recent months, struggling to gain strength as the Federal Reserve maintains a steady, relatively dovish tone and looks for further growth before indicating an interest rate hike is on the horizon.
The Canadian dollar, meanwhile, weakened on Friday after data showed the country unexpectedly shed 9,400 jobs in June, with the unemployment rate rising to 7.1 percent from May`s 7.0 percent.
The Canadian dollar slumped to 1.07317 U.S. dollars, compared with 1.06463 late Thursday.
The Australian dollar also declined after Reserve Bank of Australia Governor Glenn Stevens warned in The Australian newspaper that the Aussie currency was likely too strong, and at risk of weakness from a potential U.S. interest rate increase.
The Australian dollar was last at $0.93894, compared with $0.93934 late Thursday.
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