Dollar firms

The dollar traded generally higher Friday, with anxiety about the global financial crisis overshadowing the latest grim news on the US economy.
The uncertain outlook, analysts said, has favored the dollar, which is seen as a safe haven in times of turmoil.
The euro was quoted at 2100 GMT at 1.3408 dollars, down from 1.3447 on Thursday in New York.
The dollar was was little changed against the yen, another currency seen as a safe haven, at 101.63 yen from 101.65 yen.
The greenback shook off news that construction starts on new US homes slumped an additional 6.3 percent in September to the lowest level since the recession in 1991.
Housing starts fell to an annualized rate of 817,000. That was down 31.1 percent from a year ago in the latest evidence of the bursting of the housing bubble that has ravaged the US economy and led to a global financial crisis.
"Firmness in the US currency appears to stem from asset liquidations, not a comparison of economic fundamentals," said Larry Greenberg of the financial website Currency Thoughts.
"Unless the speed of progress in reliquifying money markets accelerates, investor anxiety may hit another air pocket next week. The dollar has handled such panic attacks well, and conversely gold -- the quintessential bet against the dollar and US macroeconomic policy -- has performed poorly."
Investors have been trying to assess the effectiveness of a raft of government emergency measures -- bank rescue packages and partial nationalizations -- aimed at restoring confidence in the global finance system.
The aim is to galvanize critical credit flows that had all but dried up as banks, weighed down by soured mortgage-backed securities, have been reluctant to lend money.
At the same time, the United States and major European economies are staring at a recession, according to many analysts, leaving stock market and currency investors unsettled and hesitant.
"Money and credit markets have improved in the wake of the recent barrage of policy measures," Citigroup analysts said in a note.