Summary Dollar steadied against euro in cautious trade a day after Malaysian jet was shot down over Ukraine.
NEW YORK (AFP) - The dollar steadied against the euro Friday in cautious trade a day after a Malaysian passenger plane was shot down over Ukraine and Israel launched a Gaza ground assault.
Currencies stabilized and Wall Street stocks rebounded from Thursday s drubbing amid the heightened geopolitical tensions.
The United States has said evidence suggests that pro-Moscow separatists, possibly with Russian technical assistance, downed the Malaysia Airlines plane with a surface-to-air missile, killing all 298 people on board.
Ukraine s government and Western leaders have accused Russia of supporting the separatist rebellion in the country s east,
but Moscow has denied the allegations.
"The growing possibility that the crash was not caused by a mechanical accident should have triggered additional risk aversion but instead of fear, it created relief in the markets," said Kathy Lien of BK Asset Management in a market note.
Investors are also keeping a wary eye on events in the Gaza Strip after Israel sent in troops Thursday in a ground offensive aimed at smashing Hamas s network of cross-border tunnels.
"Caution is warranted but for the most part, investors have priced in Russia/Ukraine/Israel/Gaza risk," Lien said.
