NEW YORK (AP) — The dollar traded near a record low against the euro on Friday, as concern persisted that the European Central Bank will raise interest rates later in the year.But the dollar rose against the yen, as worries dissipated that the Group of Seven would press Japan to hike its own rates to buoy its currency.

The G-7’s position on yen carry-trading, which involves borrowing money at Japan’s low interest rates to invest in higher-yielding assets elsewhere, likely won’t rise to the level of inclusion in the G-7’s communique, said Michael Woolfolk, senior currency strategist at the Bank of New York.

“This may be something of a tempest in a teacup,” he said.

Higher interest rates, used to combat inflation, can bolster a currency by making certain types of investments relatively more attractive.

The dollar strengthened to 119.12 yen from 119.06 yen.

Meanwhile, the euro bought $1.3539 in Friday afternoon trading after climbing as high as $1.3547 earlier in the session — its highest level since January 2005. That compared with the $1.3480 it bought in New York late Thursday, and was about one cent short of its all-time high from December 2004 of $1.3667.

The European Central Bank on Thursday left its benchmark rate unchanged at 3.75 percent but appeared to set the scene for an increase to 4 percent in June.

The US Federal Reserve has left rates unchanged over recent months even as the ECB has steadily increased the cost of borrowing.

Data on Friday showed that US wholesale prices increased by 1 percent in March, but with volatile energy and food prices removed, other prices were flat. Evidence that inflation hasn’t spread through a wider range of goods might relieve pressure on the Fed to raise rates.

Separately, the Commerce Department said the US trade deficit lessened for a second month, with oil imports down sharply and the politically sensitive deficit with China narrowing to its lowest point in nine months.

Meanwhile the UK pound rose this week against the dollar and yen as traders added to bets the Bank of England will increase interest rates twice more this year.

The pound rose against the yen for a fourth consecutive week as investors borrow cheaply in Japan and buy UK assets to take advantage of the extra yield on pound-denominated securities. The UK currency came off a six-week high on concern that Group of Seven officials meeting in Washington will say weakness in the yen doesn’t properly reflect Japan’s economic recovery.

“The pound fundamentals remain fairly strong,” said Gavin Friend, head of currency strategy at Commerzbank in London. “There was a bit of a pullback today because of nervousness ahead of the G-7 meeting but this won’t last.”

The currency traded at $1.9829 as of late yesterday in London, from $1.9655 a week ago. It was at 236.50 yen, from 235.86 April 12 and 234.36 last week. The pound reached the highest since February 27 earlier on Friday, before paring the gains.

Traders added to bets on volatility in the pound against the yen after scaling them back for the past 10 days. Greater fluctuations in the exchange rate increases the risk of buying UK assets using funds borrowed in yen.