NEW YORK - The euro managed to slow losses against the dollar on Friday as traders eyed the possibility of fresh elections in Greece.

The euro fell a fraction of a percent $1.2921 by 2200 GMT, down from $1.2939 late on Thursday.

“This is the fifth day without a firm government in place for Greece,” said Kathleen Brooks, research director at trading site

“If a coalition is not found soon then we could be heading back to the polls, which open up the possibility of a prolonged period of Greek political instability.”

The euro has tumbled heavily since last weekend’s election in Greece, which put pro-fiscal-reform parties in the minority.

French voters also went to the polls, electing socialist Francois Hollande. That was seen as a step away from austerity by many traders.

“Last Sunday’s elections in Europe were a refutation of a two-year effort to repair the European banking system, restore confidence in Europe’s bond markets and preserve the euro as a common currency,” said FTN Financial chief economist Chris Low.

In other currency market developments the pound fell 0.4 percent against the dollar to $1.6066.

The dollar virtually unchanged against the yen at 79.93.