Euro edges up against dollar amid eurozone discord

Agence France-Presse

Posted at Nov 19 2011 12:42 PM | Updated as of Nov 19 2011 08:42 PM

NEW YORK - The euro edged up against the dollar Friday despite new open EU discord over how to muster funds to strengthen the eurozone against contagion.

The euro picked up to $1.3519 from $1.3457 late Thursday, after having jumped as high as $1.3614.

The euro also pushed up to 104.00 Japanese yen from 103.60 yen, while the dollar lost to 76.93 yen from 76.98 Thursday.

While there were some encouraging signs from Greece and Italy on political acceptance of austerity programs, European Central Bank chief Mario Draghi's blunt rebuff to suggestions that the ECB can supply rescue funds for the eurozone added a new layer of risk in the markets.

Draghi called on Europe's leaders to follow through with their own plans to raise more money for the EU emergency fund instead -- a plan of weeks ago that appeared to have hit a wall.

With a comprehensive deal to protect the eurozone still not in sight, traders warned of more danger ahead for the euro.

"The rebound in the single-currency could be short-lived as the fundamental outlook for the region remains bleak," said David Song of DailyFX.

"The crisis out of Europe has entered a new scary chapter as the events of the past couple weeks have exposed the inherent flaws of the zone," said George Goncalves of Nomura Fixed Income Research.

"It's clear downside risks remain. In fact, we could be approaching the point of no return for the fate of the euro."

The US dollar ended the day lower against the Swiss franc, at 0.9162 francs from 0.9219 francs.

The British pound pushed higher to $1.5798 from $1.5751.