NEW YORK (Reuters) - The dollar is expected to fall in the week ahead as investors consider that euro declines on uncertainty surrounding the debt problems in Greece have been too far, too fast.

The euro has tumbled 5.9 percent year to date, mostly on concerns fiscal woes in smaller economies on the edge of the euro zone could drag down the entire bloc.

But euro zone deputy finance ministers and senior central bankers have reached an agreement on the terms of possible emergency loans for Greece, a European Union source said on Friday.

That talk of a lifeline, and European Union President Herman Van Rompuy saying in an interview that a Eurogroup meeting in mid-April will find a solution for any remaining Greek aid problems, prompted investors to shrug off Fitch's cut to its Greece credit rating by two notches.

"It's steady to lower (on the dollar) in the absence of any new news from Europe," said Nick Bennenbroek, head of FX strategy at Wells Fargo in New York. "Greek developments were probably the most significant driver of the euro this week."

For the week, the euro fell a modest 0.1 percent against the dollar after a volatile week, which was nontheless its worst showing since March 28. The dollar fell 1.6 percent against the yen, at current prices, the worst week since February 28.

On Thursday the euro fell to near its lowest level of the year, going near the trough touched in March.

The euro came under renewed assault earlier in the week following reports Greece wanted to renegotiate a deal reached last month over joint aid from the European Union and the International Monetary Fund. By week's end however, concerns about Greece had faded.

The dollar may fall against the yen if investors see any sign that Chinese authorities are ready to allow the yuan to appreciate. The yen is sometimes used a proxy for the yuan and other less-flexible Asian currencies.

The New York Times this week reported China was close to announcing a shift in currency policy involving a "small but immediate" yuan revaluation.

"The big focus on the dollar next week will continue to be the developing saga in Greece and its impact on the euro, and the much anticipated change in the currency policy by the Chinese government and Chinese yuan," said Andrew Bekoff, chief investment officer at Family Office Group in New York.

The week ahead is relatively heavy on US economic releases. Today kicks off the week with the release of the Federal Budget for March, forecast to post a $188 billion deficit.

Tomorrow's releases include reports on import and export prices for March and international trade for February. Import prices are expected to rise one percent while export prices are seen climbing 0.4 percent. The international trade deficit for February is forecast to print at $38.5 billion.

The March consumer price index, slated for release on Wednesday is expected to rise 0.1 percent in both the headline number and excluding the volatile food and energy components.

The same day, a report on March retail sales is forecast to show a 1.2 percent rise in the headline number and 0.5 percent excluding autos.

The last two reports for Wednesday are business inventories for February, seen rising 0.3 percent, and the Federal Reserve's beige book.

Thursday's releases include initial weekly jobless claims, forecast at 440,000, and Treasury International Capital flows for February. Also Thursday the March industrial output report, expected to show production rising 0.7 percent, and the Philadelphia Fed index for April, seen at 20.0, will be released.