NEW YORK, Nov 24: The dollar held firm against the other major currencies as sterling weakened after comments by British Prime Minister Tony Blair on Britain’s ties to the European Union.

The euro traded at $0.8781 from $0.8782 on Thursday.

The pound sterling was quoted at $1.4095 in late deals, after 1.4121 on Thursday. But the currency in European trading plunged at one point to a four-month low of 1.4044.

The dollar was at 124.30 yen after finishing at 123.96 on Thursday.

Traders sold the pound down as Blair said Britain’s future was “inextricably linked” to Europe, in a speech billed by the media as his strongest signal yet in favor of the joining European Economic and Monetary Union (EMU).

To get the best out of it, we must make the most of our strength and influence within it; and that to do so, we must be whole-hearted, not half-hearted, partners in Europe, Blair said.

But the pound later recouped much of its losses because dealers had been expecting Blair to make a stronger case for euro membership.

Despite this latest big push by Blair, we continue to assign a probability of less than 50 per cent to the UK joining the EMU during the current parliament which could run until 2006, said Robert Sinche of Citibank.

The euro was basically range-bound in quiet trade for much of the day, with trading thin on the traditionally slow Friday after Thanksgiving.

The dollar in late-day trading here was at 1.6667 Swiss francs, up from 1.6594 on Thursday.—AFP