After the U.S. Dollar finished lower against most major currencies last week, investors continued funding riskier assets with the lower yielding Dollar. The new currency exchange rates are favored by U.S. traders who are using the diminishing dollar for funding high-yield bets.

The U.S. Treasury Secretary says he opposes legislation that seeks to force China to liberalize its currency exchange policies. Daniel Schearf reports for VOA from Beijing that Henry Paulson is visiting to discuss plans for the next round of high-level economic dialogue between the United States and China.

The dollar stumbled to fresh lows against the euro and pound on Friday with little economic news to distract currency traders from the struggling U.S. housing market.

The British pound soared above US$2.05 Wednesday for the first time in 26 years. At 0750GMT, the British currency was quoted as US$2.0513 after trading as high as US$2.0548 earlier in the day.

A top European Union official says China needs to increase market access for European goods and services and reform its currency exchange rate. Daniel Schearf reports from Beijing that the EU hopes such steps will ease growing frictions over China's enormous trade surplus with the 27-nation bloc.

When the U.S. Federal reserve chairman, Ben Bernanke announced on Tuesday that a slowdown in housing construction would remain a drag on economic growth "somewhat longer" than expected, the dollar exchange rate dropped against the euro immediately.

Finance ministers from the Group of Eight meet Friday, with issues such as the influence of hedge funds and the weak dollar on their minds. But the furor over World Bank President Paul Wolfowitz could overshadow the talks.