21 March 2008, 20:26  Dollar maintaines a strong tone against euro and yen

The dollar maintained a strong tone against major counterparts on Friday, capping what has been a week of strong gains marked by supporting actions by the Federal Reserve and an unwinding of risky bets in commodities markets. With U.S., U.K. and other major markets closed for the Good Friday holiday, trading remained quiet, allowing the dollar to retain its strong gains made throughout the week. Meanwhile, the U.S. currency traded at 99.36 yen, up slightly from 99.30 Thursday and up sharply from 95.95, a twelve-year low hit last Friday. A week ago, the dollar slid to record lows against the euro and Swiss franc, after news emerged that the 85-year-old investment U.S. firm Bear Stearns was on the verge of collapse -- and the greenback's slide continued . The resulting firmer tone of the dollar helped trigger a massive sell-off in commodities, including crude oil and gold, which were trading near historic highs after rallying since last August, when the credit crisis began exploding into the open. The Fed showing restraint in cutting rates, while also expressing renewed concerns about inflation risks, provided some limit on how many dollars the central bank was ready to flood the system with.

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