Dollar Falls to 1-Week Low as CPI Backs Fed; Pound Erases Gain
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The dollar dropped to a one-week low against the euro as a report showed U.S. inflation is contained, giving the Federal Reserve scope to maintain its monetary stimulus program.
The greenback headed for its first weekly loss against the 17-nation currency since the start of February before the Federal Open Market Committee meets next week to review its bond-buying program, known as quantitative easing, or QE. The euro rose against 12 of its 16 major counterparts as European leaders paved way for a deal on financial assistance for Cyprus. The pound erased gains versus the dollar after Bank of England Governor Mervyn King said in a television interview he sees a case for additional central-bank asset purchases.