The independence of the central bank has the low inflation. Now, a decline of inflation, this is independence. So close that the interest rates fall to zero, the central banks are working with their colleagues in the government. This irony is particularly rich in the United Kingdom, where it is by the Bank of England the freedom of the functioning of political control was one of the first Gordon Brown as chancellor of the Chancellor in 1997.

Monetary purists May shiver, the idea. However, with the exception perhaps of the European Central Bank’s independence is always relative. The Bank of Japan has allegedly since 1997 independence. But is it necessary to “close contacts with the government and the exchange of ideas that [the] one another in harmony.” Even the Fed, “an independent business unit of government”, has a complete 1951 only. Six years later she is again the feeling that money for the purchase of the government (and business) requirements – such as the Bank of England, says now that she is doing.

The euro fell to a five-week-low against the dollar this week as fears over the health of the economy on the periphery of the euro zone, after European Central Bank interest rates.

The euro under pressure earlier this week by Standard & Poor’s, the rating agency, Greece assessment of declining government bonds, where the erosion of competitiveness and a growing fiscal deficit. These warnings, followed by rating agency, regarding the outlook for the rest of the euro area underdeveloped.

The reports fueled speculation of abandoning the euro may be an option for some members of the currency bloc.

“Emu resolution clearly remains a strong theme of trade and a number of investors still requires that at least some countries are trying to return to their old currencies,” said Thomas Stolper of Goldman Sachs activity.

The euro has also been recognized by decision of the ECB to reduce interest rates by 50 basis points to 2% after its policy meeting on Thursday.

Although Jean-Claude Trichet, ECB president appeared a further reduction in the February meeting, he said that to further reduce the Central Bank meeting in March.

Some analysts to lower rates could be said, as early as next month. “During the next meeting is only three weeks ahead of economic data could once again the question of the attitude of the ECB’s decision in February cut,” said Hans Redeker of BNP Paribas. “It will be pressure on the euro.”

During the week, the euro fell to 1.6 per cent of $ 1.3219 against the dollar and fell by 1.2% against the yen Y119.79.

The euro against the pound extended from 0.8 percent to £ 0.8919, sterling was as yet some of its profits from the record of the previous week.

The pound lost 2.3% to $ 1.4820 against the U.S. dollar was Y134.22 and 2% against the yen.

The book has been strengthened on Friday on reports that the British government was close to the plans to support financial sector troubled country, the cost of bank refinancing, a relaxation of rules on the balance sheet force guarantees and toxic assets on the balance sheets of banks.

The dollar and the yen benefits greatly from the past week as concerns about the impact of the credit crisis on the financial sector as the dominant driver of currency moves.

Weak global stock markets weighed on risk management of appetite and demand for both currencies Safe Haven.

News that the U.S. government was on bail of Bank of America has made some facilitation for investors on Friday, sending the dollar and the yen weak.

During the week, the dollar rose 0.8 percent SFr1.1214 against the Swiss franc, rose by 3.1% against the Swedish krona SKr8.19 and gained 4.7% to $ 0.6701 against the Australian dollar. The yen eased only 0.3% over Y90.59 against the dollar this week.

New Zealand Dollar suffered by S & P warned it might downgrade the debt in foreign currency valuation. It reduced the outlook for New Zealand’s Rating to negative from stable, with an increase in the deficit and the deteriorating fiscal position.

The Kiwi has been sold in the news, after 7.6% to $ 0.5450 dollar on the week and from 7.3% to Y49.34 yen.