Euro, sterling gain on greenback

The US dollar dropped in relation to both the euro and sterling this week as the US Federal Reserve cut its discount rate and s some believed that the benchmark rate could follow lower soon.

The euro added 1.2 percent this week in relation to the greenback, to $1.3637, while sterling added 1.4 percent to $2.009, while the euro fell 0.2 percent versus sterling, to £0.6786 after sterling gained support from a higher inflation report that made some think that the Bank of England could raise interest rates again.

Meanwhile, the Japanese yen saw significant declines over the week as world markets seemed to calm down and investors became more willing again to engage in carry trades.

The US dollar added 1.6 percent to ¥116.09, the euro gained 2.7 percent to ¥158.33, and sterling was 2.9 percent higher to ¥233.32, while the New Zealand dollar climbed 4.5 percent to ¥83.06 and the Australian dollar was up 4.6 percent to ¥95.47.

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