U.S. Dollar Falls vs. Major Currencies

NEW YORK
Dollar & Gold News, AP - 4 years ago

The dollar fell against most major currencies Friday against amid expectations that a series of increases in U.S. interest rates is coming to an end.

In late New York trading, the euro bought $1.2334, up from $1.2316 late Thursday in New York.

The British pound gained to $1.7808 from $1.7785 the day before, while the dollar slid to 116.67 Japanese yen from 117.50 in New York.

The euro has risen about two cents this week amid gathering speculation that the Federal Reserve will soon halt its regular interest rate hikes. Higher interest rates make some types of investments more attractive and generally bolster a currency's strength.

Most traders believe the central bank will bump up short-term interest rates to 5 percent at its next meeting on May 10, but speculation is now about whether the hikes will continue after that.

The Fed indicated in its March meeting minutes that its rate-raising campaign was probably coming to an end. However, it also made clear that interest rate decisions will rely more heavily on incoming data about inflation and economic activity.

The dollar had regained some ground earlier Thursday after the Labor Department data showed the number of people signing up for jobless benefits fell sharply last week.

In other trading, the dollar bought 1.2760 Swiss francs, down from 1.2781 late Thursday, and 1.1374 Canadian dollars, down from 1.1395.