US dollar declines over week

US dollar was weaker on Friday in the wake of Thursday’s decision by the Federal Reserve to hold interest rates at 5.25 percent for another month, although analysts said that neither the Fed’s decision, nor its warning that risks of inflation remain, should have spurred the dollar’s decline. The greenback ended the week 0.3 percent lower to $2.0500 against sterling, while it dropped 0.4 percent to $1.3510 in relation to the euro.

Even though it saw gains in the middle of the week, the yen ended in relation to the New Zealand dollar and flat against several currencies. It was able to maintain its advance over the US dollar, however, where it added 0.3 percent on the week to ¥123.50. The yen ended the week where it began versus the euro at ¥166.80, against sterling at ¥247.50, and in relation to the Australian dollar at ¥104.90. It fell 0.6 percent to ¥95.40 against the New Zealand dollar. At one point during the week, the yen had gained 1 percent on major currencies and was over 2 percent higher versus the Australian and New Zealand currencies.

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