*Euro wilts as tensions between Ukraine& Russia flare up. SYDNEY, Aug 29- The safe-haven yen held firm early on Friday, while the euro was on track to post its second straight month of declines as tensions between Ukraine and Russia flared up again.» Read More
The euro recovered a little Friday but was on track for its biggest weekly fall versus the dollar in 1-1/2 years amid growing expectations the European Central Bank will cut interest rates later this year.
Both the euro and the pound retreated against the U.S. dollar as the Bank of England cut interest rates and the European Central Bank appeared to leave the door open for an eventual reduction.
The dollar edged lower against the yen and the euro Wednesday with investors reluctant to place big bets on currencies ahead of a key interest rate decision from the European Central Bank on Thursday.
The U.S. dollar showed strength on Tuesday against almost all major currencies as the currency market absorbed the dismal ISM data and looked towards a slowdown in Europe.
The euro tumbled broadly Tuesday after dismal euro zone service sector data fedexpectations the European Central Bank also might have to cut interest rates to shore up growth.
The dollar slipped against the euro and edged up against the yen Monday as investors waited to see how major central banks at policy meetings this week will respond to a potential global economic slowdown.
The dollar rose against the euro and sterling Friday after a report showed a gauge of U.S. manufacturing in January was higher than expected, helping the U.S. currency recover after soft labor market data earlier in the session.
The dollar edged higher against the euro Thursday, as dealers cut bets against the U.S. currency a day ahead of the U.S. jobs report for January that may shed light on how close the economy is to recession.
The dollar fell sharply against the euro on Wednesday after the Federal Reserve slashed benchmark interest rates by 50 basis points and said downside risks remain for growth.
The dollar edged up against the euro and yen Tuesday after a mixed bag of U.S. economic data led dealers to trim their bets against the currency ahead of Wednesday's policy decision by the Federal Reserve.
The dollar rose Friday as investors scaled back bets for another aggressive Federal Reserve interest rate cut next week and on optimism a $150 billion stimulus package would help support the U.S. economy.
The dollar fell against the euro on Thursday as strong German business confidence data andtough inflation comments by a European Central Bank policy-maker dashed hopes for a near-term interest rate cut in the euro zone.
The yen rose across the board on Wednesday as falling European stocks encouraged investors to reduce exposure to risky assets and unwind carry trades despite the Federal Reserve's hefty interest rate cut.
The dollar tumbled against the euro Tuesday after the Federal Reserve unexpectedly slashed its benchmark overnight lending rate in an attempt to allay market fears of a U.S. recession.
The low-yielding yen rose broadly on Monday, hitting a 2-1/2 year peak versus the dollar and five-month highs against the euro as investors shunned risky trades amid a sell-off in global stocks.
The dollar gained against the euro and yen Friday as rising equity markets calmed investors, prompting a few to edge back into relatively risky carry trades.
The dollar dropped Thursday after Federal Reserve Chairman Ben Bernanke told a congressional committee that more interest rate cuts may be necessary and that the U.S. economic outlook has worsened.
The euro plunged against the U.S. dollar after a European Central Bank official told Bloomberg News the central bank may revise down its euro zone growth forecasts for 2008.
The dollar Tuesday fell to its lowest against the yen since June 2005 and extended declines against the euro after U.S. retail sales data provided further evidence an economic slowdown was spreading to the consumer.
The dollar dropped to a record low versus the Swiss franc and seven-week lows against the euro and yen on Monday as concern that weak U.S. corporate earnings will prompt more interest rate cuts weighed on the currency.