MercoPress. South Atlantic News Agency

Dollar recovers against the Euro.

The US dollar advanced last week against the Euro following growing expectations that the European Central Bank might cut interest rates, but dropped against the yen given the good news about the Japanese economy.

Speculation about a 0,25% cut in the basic rate of 2% by the European Central Bank next April 1 was suggested by German sources following a drop in the German business expectations index, and press interviews with top EC bank officials admitting "flexibilisation" if consumer spending did not show recovery.

However the US economy also sent good signals with the Michigan University consumer confidence index increasing in March to 98,5 from 94,4 in February.

Meantime the yen continues to reflect the recovery of the Japanese economy with retail sales increasing for the fourth month running and the international trade surplus expanding for the eighth consecutive month.