10 May 2005, 15:15  The U.S. dollar gained ground against the yen

The U.S. dollar gained ground against the yen but edged lower against the euro Tuesday as traders awaited U.S. economic data later this week. The British pound fell to $1.8794 from $1.8836 after Britain on Monday announced weak industrial production numbers and the Bank of England left its interest rates unchanged. The dollar's rise against the Japanese yen came on relief that the Chinese government didn't make any moves to revalue the yuan during last week's string of Japanese holidays. A move that boosts the Chinese currency would be expected to lift other Asian currencies. The dollar was boosted last Friday by strong U.S. jobs data. "The outlook for the U.S. economy and the dollar has substantially improved due to the jobs data," said Masaki Fukui, senior vice president of the foreign exchange division at Mizuho Corporate Bank. This week, the U.S. government is expected to release balance of trade figures for March on Wednesday and April retail figures on Thursday. Though the euro has stabilized recently, the currency has remained strong against the U.S. dollar amid nagging concerns about the U.S. trade and budget deficits.

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