The dollar is declining as tensions between the United States and China increase

The US dollar fell to its biggest weekly decline in nearly four months against a basket of currencies, as the dollar recorded its biggest weekly decline against the euro since late March with the rise of the single European currency.

Tensions between the United States and China escalated after the Chinese Foreign Ministry asked the US embassy early Friday to close its consulate in Chengdu in response to Washington's request to close the Chinese consulate in Houston.

The US dollar fell 0.8% against the yen to 105.99 yen, the US dollar fell against the euro by 0.4%, bringing the European single currency up to 1.16415 dollars, and the main dollar index fell 0.4% to 94.42.