Against a basket of rivals, the dollar rose 0.2 percent to 91.71, its highest level since Jan 12. For the week, it has gained more than 1.5 percent and is on track to post its best weekly performance since late November 2016.
In Japan, the Japanese yen was little changed after the central bank’s policy decision at which it kept settings unchanged.
The dollar changed hands at 109.17 yen, having risen to a 2-1/2-month high of 109.49 yen earlier in the week. So far this week, it has gained 1.4 percent.
The euro, in which speculators held record long position, fell to $1.20965 in the previous session, its lowest level since Jan. 12. It last stood at $1.2112, and is down 1.4 percent on the week.
· In a bipartisan vote, the Senate Judiciary Committee on Thursday advanced a bill making it more difficult for President Donald Trump to fire special counsel Robert Mueller.
Four Republicans joined 10 Democrats on the committee in voting to advance the bill.
It is unlikely, however, that the bill will get a vote on the floor of the full Senate. Majority leader Mitch McConnell, R-Ky., has said the bill is "not necessary" and that he would not bring it up for a vote.
"I'm the one who decides what we take to the floor," McConnell told Fox News last week. "That's my responsibility as the majority leader, and we will not be having this on the floor of the Senate."
· The U.S. Senate confirmed Mike Pompeo as President Donald Trump’s secretary of state on Thursday, and the former CIA director set off immediately on a trip to meet key allies in Europe and the Middle East.
Moments after Pompeo was sworn in, the State Department said he would visit Saudi Arabia, Jordan and Israel during the weekend after attending a NATO meeting on Friday in Brussels.
· The Bank of Japan kept monetary policy steady on Friday and removed a phrase on the timeframe for achieving its 2 percent inflation target, suggesting it is no rush to reach its elusive price goal with the economy in good shape.
In a widely expected move, the BOJ maintained its short-term interest rate target at minus 0.1 percent and a pledge to guide 10-year government bond yields around zero percent.
The BOJ left its inflation forecast for next fiscal year unchanged from three months ago, at 1.8 percent. It also projected inflation of 1.8 percent for the following fiscal year ending in March 2021.
· Japan’s industrial output rose more than expected in March, government data showed on Friday, but a large increase in inventories of electronic parts suggests manufacturers may have to cut production, hurting economic growth.
Separate data showed retail sales rose less than expected in a blow to hopes for higher consumer spending. Demand for labour, however, increased in March as companies continue to struggle to find workers.
Japan’s industrial output rose 1.2 percent in March from February, the data showed, beating the median forecast for a 0.5 percent increase and followed a 2.0 percent rise in February.
Retail sales rose 1.0 percent in March from a year earlier, less than a median market forecast for a 1.7 percent annual increase.
The jobs-to-applicants ratio, a measure of labour demand, rose to 1.59 in March from 1.58 to match the highest level seen in four decades. Japan’s low birth rate and rapidly ageing population has led to a shortage of workers.
· Profits at Chinese industrial firms rose 3.1 percent year-on-year in March, slowing significantly from the pace of the first two months of the year and adding to signs of cooling growth in the world’s second largest economy.
Profit growth last month declined from 23.8 percent in the same period last year, the slowest since December 2016, official data showed on Friday. Earnings were up 16.1 percent over the first two months of the year.
The weak profits were due to a later Lunar New Year holiday this year, softer producer price inflation, and higher financing costs due to currency conversion losses, He Ping of the National Bureau of Statistics (NBS) said in a statement accompanying the data.
· The U.S. economy likely slowed in the first quarter as growth in consumer spending braked sharply, but the setback is expected to be temporary against the backdrop of a tightening labor market and large fiscal stimulus.
Gross domestic product probably increased at a 2.0 percent annual rate, according to a Reuters survey of economists, also held back by a moderation in business spending on equipment as well as a widening of the trade deficit and decline in investment in homebuilding.
· Oil prices edged lower on Friday, but Brent largely held its gains from the previous session amid concerns that Iran may face renewed sanctions, choking off supply.
Global benchmark Brent crude futures LCOc1 were down 27 cents, or 0.4 percent, at $74.47 a barrel by 0644 GMT, after rising 1 percent on Thursday
U.S. West Texas Intermediate (WTI) crude CLc1 fell 19 cents, or 0.3 percent, to $68 a barrel. The contract gained 0.2 percent the previous session.
Brent is heading for a third week of gains, up by 0.5 percent, while WTI is set to drop 0.4 percent for the week.
Reference: Reuters, CNBC
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