NEW YORK: The dollar was down against the euro on Friday after inflicting heavy losses on the single European currency that echoed across markets throughout the globe.
The euro recouped a cent to fetch 1.2755 dollars in late New York trade, versus 1.2644 the day before.
The euro's increase marked a turning point for the market, analysts said, after the euro touched yearly lows because of the Greek debt crisis and Thursday's record sell-off on US stock markets.
"For the first time in five trading sessions, the euro has finally strengthened against the US dollar," said Kathy Lien, of Global Forex Trading.
Investors look to the weekend and the prospect that the IMF would agree to release its 30-billion-euro slice of a 110-billion-euro (145-billion-dollar) EU-IMF bailout for Greece.
"The sustainability of the currency's recovery will be contingent upon an announcement from policymakers this weekend," said Lien.
Earlier in the week, markets had been spooked by violent demonstrations in Athens this week including a bank firebombing that killed three, amid fears the bailout could prove insufficient.
Concerns also mounting that the Greek rescue deal will fail to shield Spain and Portugal from crippling market pressures.
Elsewhere the pound slumped to a 13-month dollar low on fears that Britain's election outcome would hamper the nation's ability to slash sky-high public debt.
The vote sparked the country's first official hung parliament since 1974, with the main opposition Conservatives garnering the most seats but with no chance of winning an overall majority, results showed.
"We are in no-man's land at the moment and the markets do not like uncertainty -- this is leading to a sell-off in the pound," said Currencies Direct dealer Phil McHugh.
The pound had tumbled to 1.4476 dollars -- its lowest level since April 2009 -- as the Conservatives failed to clinch a decisive victory against the ruling Labour party.
By late evening in New York on Friday, the pound had recovered slightly to 1.4804 dollars, largely unchanged against Thursday's prices.
