The dollar declined against major West European currencies yesterday on speculation that U.S. interest rates will come down and in expectation of a drop in the U.S. money supply.

Outside factors also affected the dollar. The mark has risen partly on renewed speculation of a revaluation that would result from a realigment of the European Monetary System float. The dollar closed in Frankfurt at 2.2910 marks, down from 2.3075. The lack of progress toward a cease-fire in the Falkland Islands kept some downside pressure on the British pound against European currencies, but it rose sharply in relation to the dollar, closing in London at $1.8255, up from $1.8205 Thursday.

Gold remained steady in quiet trading, closing in Zurich at $334.50 an ounce, unchanged from Thursday's close, and in London dropping by $2 to $334.25. In New York gold finished the week at $334, up $2 on the day. The New York Commodity Exchange settled it at $333.90 compared with $332.50.

Silver, however, eased to $6.79 an ounce from $6.83, and it settled on the Comex at $6.788, down from $6.828.

CANADIAN JOBLESS: Canada's unemployment rate rose to 9.6 percent in April from 9.0 percent in March.

EXPORTS TO CHINA: U.S. exports to the Peoples Republic of China fell 23 1/2 percent in the first quarter from a year earlier to $905.2 million, largely because of big declines in U.S. wheat and cotton sales, the U.S. Embassy said yesterday.

Chinese exports to the U.S. market shot up 46.3 percent to $556.6 million, led by crude oil, petroleum products, clothing and accessories, footwear and nonmetallic minerals, the embassy said. From Staff Reports and News Services