Extending overnight losses, the dollar’s index against a group of six major currencies lost about 0.4 percent to 88.253 , the lowest since December 2014. The index was on track to lose more than 2 percent on the week in its largest decline since February 2016.
Traders also suspect that confidence in the dollar has been eroded by mounting worries over the U.S. budget deficit which is projected to balloon to near $1 trillion in 2019 amid a government spending splurge and large corporate tax cuts.
The euro was up 0.4 percent at $1.2553 after reaching a three-year top of $1.2556 and poised to gain 2.4 percent this week.
The dollar was down 0.4 percent at 105.685 yen after slipping to 105.545, its lowest in 15 months. It was on track for a weekly loss of 2.9 percent.
· Bitcoin rose above $10,000 (7,108.33 pounds) on Thursday for the first time in more than two weeks, as investors bought back the digital currency after having fallen 70 percent from its all-time peak hit in mid December.
On the Luxembourg-based Bitstamp, bitcoin rose as high as $10,234 and was last at $10,123.12, up nearly 7 percent on the day.
Thomas Lee, managing partner at Fundstrat Global Advisors, sees a new record peak for bitcoin by July, based on the currency’s 22 corrections since 2010.
He added that 2018 will remain a strong year for cryptocurrencies, but he sees the larger and more established blockchain networks such as bitcoin and ethereum dominating again.
· Commodities-related revenue at the 12 biggest investment banks fell by 42 percent last year to its lowest since at least 2006, a report by financial industry analytics firm Coalition said on Friday.
Revenue from commodity trading, selling derivatives to investors and other activities in the sector fell to $2.5 billion in 2017 from $4.3 billion the previous year, it said in a report.
A number of firms suffered heavy losses in the first half of 2017 after a slide in natural gas prices, while others lost money in the second half due to swings in oil prices during Hurricane Harvey, analysts have said.
· The European Central Bank will end its asset purchase program by the end of the year and then wait six months before raising interest rates, according to economists polled by Reuters, who again upgraded their growth outlook for this year.
While the euro zone economy is booming now, it is expected to lose some of that momentum. And inflation is not due to reach the central bank’s target of just under 2 percent until at least 2020, according to the poll of around 80 economists.
· Japan’s government on Friday reappointed Bank of Japan Governor Haruhiko Kuroda for another term and chose an advocate of bolder monetary easing as one of his deputies, a sign the central bank will be in no rush to dial back its massive stimulus programme.
Bank of Japan Governor Haruhiko Kuroda said on Friday the central bank should not prematurely announce plans for withdrawing its massive monetary stimulus as doing so could confuse markets.
The Japanese government is considering nominating economist Masazumi Wakatabe, an advocate of bolder monetary easing, as one of the Bank of Japan’s two deputy governors, the Nikkei reported, a sign the bank will be in no rush to dial back its massive stimulus programme.
The other deputy governor post will likely go to BOJ Executive Director Masayoshi Amamiya, a veteran central banker known for masterminding various monetary policy steps, the Nikkei business daily reported. Governor Haruhiko Kuroda is widely expected to be nominated for a second term.
· Japan’s exports were expected to rise in January for a 14th straight month, a Reuters poll showed on Friday, as robust overseas demand supports Japan’s economic recovery.
Exports were seen likely to grow 10.3 percent in January from a year ago, the poll of 20 economists found, thanks to brisk shipments of cars and semiconductor production equipment.
Imports were seen rising 8.3 percent from a year earlier, resulting in a 1.0 trillion yen (£6.69 billion) trade deficit, the poll found.
· U.S. crude extended gains in subdued trade on Friday as the dollar slipped to a three-year low, with many Asian markets closed for the Lunar New Year holiday.
NYMEX crude for March delivery CLc1 was up 17 cents, or 0.3 percent, at $61.51 a barrel by 0750 GMT, after earlier touching a one-week high of $61.82. For the week, the contract has risen about 4 percent after losing nearly 10 percent last week.
London Brent crude LCOc1 was up 25 cents, or 0.4 percent, at $64.58 after settling down 3 cents. Brent is up nearly 3 percent for the week after falling more than 8 percent last week.
Reference: Reuters, CNBC
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