16 January 2006, 15:11  The U.S. dollar started the week down against the euro

The U.S. dollar started the week down against the euro Monday, as indications the U.S. Federal Reserve would not continue to raise rates strengthened the 12-nation European currency. The euro bought $1.2148 Monday, slightly up from the $1.2129 it fetched in late New York trading on Friday. The British pound remained flat at $1.7757, compared with $1.7758 late last week. The dollar strengthened slightly against the Japanese currency, buying 114.34 yen, up from 114.19 late last week. Last week's decision by the European Central Bank to keep interest rates steady, combined with positive numbers on the U.S. trade deficit helped strengthen the dollar. But the U.S. currency has overall backed off a rally it enjoyed at the end of 2005, as the Fed has continued to show no indication that it will change its rates in the coming months.

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