It has been reported that another US investment bank could get a fund injection amid worries about further losses at financial institutions from credit market turmoil.
Merrill Lynch may get a capital infusion of up to $5 billion from Singapore state investor Temasek Holdings, the Wall Street Journalreported yesterday.
A Temasek capital infusion into Merrill would be the latest in a series by sovereign wealth funds into Western banks hurt by this year's credit crunch.
The US currency stepped back from a two-month high against the euro and a basket of major currencies, and from a six-week high against the yen.
The euro rose 0.3 per cent to $1.4360 pulling away from a two-month low of $1.4310 touched yesterday.
The dollar hovered around 113.05 yen edging down from late US trade yesterday but staying in sight of 113.60 yen hit last week for the first time since early November.
The dollar index, which tracks the dollar's performance against a basket of major currencies, was down 0.20 per cent at 77.616, edging back from a two-month high of 77.854 hit on Thursday.