21 March 2005, 09:31  Dollar Advances Against Other Major Currencies

The dollar gained ground Friday, moving upward even as oil prices remained close to a record high.
The euro fell to $1.3311 in late New York trading from $1.3376 late Thursday. The dollar bought 104.68 Japanese yen, up from 104.52 yen; 1.1644 Swiss francs, up from 1.1565; and 1.2024 Canadian dollars, up from 1.2012.
The British pound dropped to $1.9196 from $1.9241 late Thursday.
The yen came under pressure due to crude oil prices surging to new record levels. Japan meets its oil needs almost entirely through imports and the nation's currency is sensitive to oil price movements.Trading was muted ahead of a three-day weekend in Japan.
On oil markets, crude futures edged higher as the market worried about supplies even after OPEC's president said the group may authorize pumping an extra half-million barrels a day.
The dollar fell against the euro earlier this week on news of a record U.S. current account deficit -- a concern that has been a key factor in its weakness over recent months. However, markets also are looking ahead to next Tuesday's meeting of the U.S. Federal Reserve, which is widely expected to raise interest rates.
The focus is on whether the central bank continues to say it will raise borrowing costs at a "measured" pace or signals that it is prepared to raise rates more quickly.

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