Summary The dollar fell slightly in the wake of Washington's pullback from the budget and debt crisis.
NEW YORK CITY (AFP) - The dollar fell slightly against the euro and the yen gained Friday as foreign exchange market calm returned in the wake of Washington s pullback from the budget and debt crisis.
But expectations of a delayed stimulus taper by the Federal Reserve also kept the dollar weak, with US bond yields slipping further as Washington s political crisis eased.
At 2100 GMT, the euro was at $1.3682, compared to $1.3677 late Thursday.
The dollar fell to 97.72 yen from 97.91 yen on Thursday, while the euro slipped to 133.75 yen from 133.92.
The British pound, meanwhile, extended its run, rising to $1.6174 from $1.6162, amid expectations that Britain could be ready to slightly tighten its policy after an improvement in economic data.
David Song of Daily FX speculated that the Bank of England could show a lean toward exiting its easy money stance earlier than expected.
"An upbeat third quarter GDP report may heighten the bullish sentiment surrounding the sterling," he said.
"It seems as though the central bank will make a greater push to limit the downside for the British pound in an effort to hedge against imported inflation," he added.
The dollar eased to 0.9015 Swiss franc from 0.9022 franc.
