The euro edged up against the dollar on Friday after results of European bank stress tests eased some worries about the outlook for the region's financial system, while on Wall Street stocks struggled to hold gains.
Gold prices rose for a 10th straight session as fears over the outcome of talks to avert a U.S. default fueled safe-haven buying, which accelerated after President Barack Obama and Republicans traded demands for a serious deficit plan.
Only eight of the 90 European banks surveyed by the European Banking Authority failed the stress tests, well below market expectations that as many as 15 lenders would need more capital to withstand a prolonged recession.
"It's a relief not more banks failed," said Thomas Roth, executive director of U.S. government bond trading at Mitsubishi UFJ Securities USA Inc. in New York.
The test results, which were released after European stock markets had closed, measured the banks' ability to withstand a prolonged recession that did not build in the impact of a Greek default.
European bank ADRs mostly gained, including Barclays, up 0.3 percent at $14.60.
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