Worries about European countries' debt, particularly in Greece and now Portugal, have helped strengthen the dollar in recent months, pushing it up nearly 5 percent this year against the 16-nation euro.
In early morning trading, the euro was quoted at $1.3301 in New York versus $1.3316 late Thursday. Before Greece requested that the aid plan be put into use, the euro had sunk as low as $1.3202, the weakest point since April 2009.
Analysts cautioned that the aid package would last Greece only into next year, and a multi-year program would likely be necessary. Meanwhile, the tax hikes and services cuts in European countries struggling to contain debt could undermine their economies, even as the US economic activity grows by more than 3 percent this year. That's likely to keep the euro dropping lower toward below $1.30, said Brown Brothers Harriman analysts in a research note Friday.
“Relief for the (euro) will be a stop-and-start process,” said Credit Suisse analysts. The German parliament still has to approve aid for Greece, and Portugal, too, is struggling with heavy debts.
Also on Friday, the closely-watched Ifo survey of German business confidence rose in April for the second straight month, signaling strength in Europe's biggest economy.
In other trading Friday morning, the British pound fell to $1.5364 from $1.5389 after a weak report on first-quarter gross domestic product.
The dollar gained to 93.49 Japanese yen from 93.35 yen.
