Currencies
The euro rose against the dollar after the European Central Bank left its benchmark interest rate unchanged, a move some analysts took as a sign the bank is stressing its independence amid calls for lower borrowing costs. The ECB has stressed for weeks that their foremost goal is to fight inflation, which has been higher than the 2 percent inflation target ceiling for the past 10 months. Consumers in Germany and Italy, for example, paid more for goods and services in April. Inflation is always bad for a currency, and so in that context, the ECB's keeping rates unchanged should be good for the euro. But everything changed on Friday when U.S. advance first quarter gross domestic product jumped almost twice as much as anticipated. Traders sold the euro, and it fell over one U.S. cent.

The yen posted its biggest weekly decline in a month against the dollar after the Japanese media reported that Bank of Japan Governor Masaru Hayami intended to resign, a report which Hayami on Saturday emphatically denied. The currency was also weighed down by a number of weaker than expected economic reports and amid concerns about the inexperience of 79-year-old Shiokawa, the new finance minister. As his initiation to the new post, the former chief cabinet secretary, transport minister and education minister were to face the meeting of central bankers and finance ministers from the Group of Seven major industrial nations in Washington.

There continues to be speculation that a weaker yen to bolster exports is the best option for Japan's policy makers.

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