Will Fed stimulus weaken the value of the dollar?
''The dollar weakened against most of its major peers after U.S. inflation data fueled speculation Federal Reserve policy makers will maintain economic stimulus.
The U.S. currency fell against the 17-nation euro as a gauge of consumer prices excluding food and energy rose less than forecast. Norway's krone advanced with crude oil even as the central bank warned this week the currency may weaken. The yen headed for its sixth weekly drop against the dollar. The pound rallied as 10-year gilts yields were poised for the biggest weekly advance in more than three years.
'We're seeing a correction in the dollar today as yields wilt a little bit on disappointing CPI data and little bit weaker consumer confidence,' said Boris Schlossberg, director of research at online currency trader GFT Forex in New York. 'The krone is becoming the ultimate oil-growth play and they are concerned about the unnatural strength.'
The dollar fell 0.7 percent to $1.3168 per euro at 3:05 p.m. New York time. It headed for a 0.4 percent weekly loss. The U.S. currency declined 0.2 percent to 83.38 yen, paring a 1.1 percent weekly increase.''