Euro strength is really dollar weakness (page 2 of 2)

In addition, buying by Japanese importers also helped the dollar cushion itself from further falls. Furthermore, thanks to euro's rise against the Japanese currency, the dollar was trading at 117.30 before trading closed for the week.

Rumours also swirled amongst market participants that Japan may have intervened when the yen appreciated to 116.00 levels. Meanwhile Finance Ministry Officials declined to comment on whether Japan had intervened.

Range for the week: 115.00 -120.00.

Sterling

The British pound slid to a six-year low on trade-weighted basis as concerns the Bank of England would cut interest rates later in the week sent the pound crashing through key chart levels.

Investors have recently rewarded currencies with high or rising interest rates, so lower British rates would damage sterling by reducing the return on sterling deposits.

In addition, data showing British manufacturing output fell more than expected did the pound no favours. British manufacturing output fell a bigger than expected 0.4 pct in March, the worst performance since last October.

Meanwhile, the BoE left its benchmark interest rate unchanged at 3.75 percent. The retention of Britain's wide yield advantage over the United States lifted sterling to $1.6079. In the coming week, economic data from Britain includes unemployment, inflation and producer price data.

Range for the week: $ 1.5800 - $ 1.6300.