The euro hovered around $0.86 on Friday, propped up against the dollar as uncertainty about the US presidency and Congress undermined the US currency.
At 2200 GMT, the euro was trading at $0.8600 from $0.8660 a day earlier in New York. It briefly hit $0.87 cents in European trading.
Analysts said once the results of the current recount in Florida were known, whoever took the White House could be in a position of weakness due to the razor-thin majority and legal challenges, while Congress would be a cockpit for partisan fights.
"It's more a dollar story than a euro story," said currency economist Nick Parsons at Commerzbank. "The dollar is moving with two negative factors: the stock market and the prospect of what could be a constitutional crisis in the US."
The single currency was also supported by weakness in US stock prices, as the Nasdaq slid more than five percent.
Analysts added that the latest round of intervention this week by the European Central Bank had put the market on notice that the authorities would punish continued attacks on the euro.
"It shows that the ECB is really committed to holding these levels, allowing for some kind of stability in the currency," Razia Khan at Standard Chartered said.
Parsons at Commerzbank said, "the success of the ECB intervention is that it makes investors think twice before they sell the euro."
In late New York trade, the dollar was buying 107.95 yen from 107.34 and 1.7731 Swiss francs against 1.7548.
Sterling was being exchanged at $1.4253 against 1.4324 Thursday.— (AFP)
© Agence France Presse 2000
© 2000 Mena Report (www.menareport.com)
