Dollar is falling and the yen is rising as dealers evaluate the path of US interest

The dollar settled near its lowest level in seven weeks on Friday, as concern about banks kept investors cautious and dealers assessed the possibility that the Federal Reserve (the US central bank) would stop raising interest rates.

The dollar index, which measures the performance of the US currency against six major currencies, fell 0.097 percent to 102.48 points, remaining slightly above the seven-week low of 101.91 it touched on Thursday. The index achieved slight gains on Thursday, its first in six trading days.

The Fed on Wednesday raised interest rates by 25 basis points as expected, but took a cautious stance on further hikes due to banking turmoil even as Chairman Jerome Powell kept the door open for another rate hike if needed.

US Treasury Secretary Janet Yellen confirmed on Thursday that she is ready to take further measures to ensure Americans’ bank deposits remain safe to calm investors.

The yen rose 0.5 percent to 130.16 against the dollar, after touching a six-week high of 130.055 earlier in the session.

The pound settled at 1.2285 dollars, after touching a seven-week high of 1.2341 dollars on Thursday, in volatile trading.

The euro rose 0.03 percent at $1.0833, to remain below its seven-week high of $1.0930, which it touched on Thursday.

Investors will focus on March PMI data from the euro zone, Germany, France and Britain due later on Friday to assess the state of the European economy.

The Australian dollar rose 0.07% to 0.669 against the dollar, while the New Zealand dollar fell 0.14% to 0.624 against the dollar.