2018.05.1201:05:00UTC+00Dollar Flat on Week as Traders Lock in Profits

The dollar declined for the third day versus a basket of currencies as traders locked in gains on its recent rally prompted by widening interest rate spreads inclined towards the U.S. and indications of tempered growth in other parts of the world.

The dollar index increased initially before the a wave of selling resurfaced. It fell 0.15 percent at 92.603, below its strongest level of 2018 at 93.416 on Wednesday. It posted a marginal 0.04 percent loss on the week in late trading, after three consecutive weeks of gains.

The euro climbed for the second day as the greenback pulled away further from a 2018 high hit earlier this week. Despite the decline, the single currency was still on track for a loss for a fourth consecutive week versus the dollar.

Versus the dollar, the euro booked a 0.3 percent gain at $1.1946 and a 0.2 percent increase versus the Japanese yen at 130.55. For the week, the common currency declined 0.1 percent versus the U.S. dollar and managed to record a 0.05 percent increase versus the yen.

Meanwhile, the Swedish crown continued its rally, as more traders recoiled from their bearish bets on indications that some Riksbank officials are open to the concept of lifting interest rates despite concerns about low inflation. The Swedish currency increased by 0.6 percent at 9.5941 crowns per dollar to notch the best weekly gain versus the greenback since late June 2017. The currency posted its best weekly gain against the euro since February 2010.