* Dollar flat for day, week * Dollar reaches seven-week high of 110 yen * Euro and sterling fall vs dollar * Yuan at new 3-year high of 6.36 to dollar * Graphic: World FX rates https://tmsnrt.rs/2RBWI5E (Updates prices and market activity; previous NEW YORK/LONDON) By David Henry NEW YORK, May 28 (Reuters) – The dollar gave up gains from early on Friday as traders tidied positions ahead of month-end and a holiday weekend after seeing new economic data confirm expectations about U.S. inflation and the recovery from the COVID-19 pandemic. The dollar index of major currencies rose as much as 0.4% during the day in a sharp rebound from 4-1/2 month lows plumbed on Tuesday before it fell back to flat for the day and the week at 89.99. At the same time, central banks in some other countries had appeared likely to move more quickly than the U.S. Federal Reserve to back away from easy money policies and let interest rates rise.
