The political turmoil tends to have a
secondary effect on markets because of its impact on investors'
appetite for risk and their expectations that the Trump administration
will succeed in passing tax reform and stimulus steps.
U.S.
data on Thursday showed producer prices rebounded more than expected
last month, leading to the biggest annual gain in five years and
suggesting that inflation pressures were rising.
Combined with a tightening labor market, firming inflation backs market expectations that the Federal Reserve is poised to raise interest rates at its meeting next month. The central bank has forecast two more hikes this year after a quarter point increase in March.
But lower Treasury yields offset the dollar's upward pressure. The benchmark 10-year U.S. yield US10YT=RR stood at 2.382 percent in Asian trade, down from its U.S. close of 2.400 percent as well as a nearly six-week high of 2.423 percent touched on Thursday.
The dollar index, which tracks the greenback against a basket of six major rivals, was flat on the day at 99.622 .DXY, but was up 1 percent for the week.
The dollar edged down 0.1 percent against the perceived safe-haven Japanese currency to 113.78 JPY= but was up 0.9 percent for the week, while the euro added 0.1 percent to $1.0866 EUR=, down 1.2 percent for the week.
Sterling was steady on the day at $1.2886 GBP= after dropping to a one-week low on Thursday following the Bank of England's decision to keep interest rates unchanged. Policymakers indicated that rates were unlikely to rise until late 2019.
U.S. crude oil futures CLc1 added 0.1 percent to $47.89 per barrel, while Brent LCOc1 also rose 0.1 percent to $50.81.
Both benchmarks had risen for a second day on Thursday, finishing up more than 1 percent at their highest respective closing prices in a week as support grew for OPEC output cuts following U.S. government data earlier in the week showing a big draw in crude inventories.
Spot gold XAU= was 0.2 percent higher at $1,226.50 an ounce, moving away from an eight-week low of $1,213.81 plumbed on Tuesday.
Combined with a tightening labor market, firming inflation backs market expectations that the Federal Reserve is poised to raise interest rates at its meeting next month. The central bank has forecast two more hikes this year after a quarter point increase in March.
But lower Treasury yields offset the dollar's upward pressure. The benchmark 10-year U.S. yield US10YT=RR stood at 2.382 percent in Asian trade, down from its U.S. close of 2.400 percent as well as a nearly six-week high of 2.423 percent touched on Thursday.
The dollar index, which tracks the greenback against a basket of six major rivals, was flat on the day at 99.622 .DXY, but was up 1 percent for the week.
The dollar edged down 0.1 percent against the perceived safe-haven Japanese currency to 113.78 JPY= but was up 0.9 percent for the week, while the euro added 0.1 percent to $1.0866 EUR=, down 1.2 percent for the week.
Sterling was steady on the day at $1.2886 GBP= after dropping to a one-week low on Thursday following the Bank of England's decision to keep interest rates unchanged. Policymakers indicated that rates were unlikely to rise until late 2019.
U.S. crude oil futures CLc1 added 0.1 percent to $47.89 per barrel, while Brent LCOc1 also rose 0.1 percent to $50.81.
Both benchmarks had risen for a second day on Thursday, finishing up more than 1 percent at their highest respective closing prices in a week as support grew for OPEC output cuts following U.S. government data earlier in the week showing a big draw in crude inventories.
Spot gold XAU= was 0.2 percent higher at $1,226.50 an ounce, moving away from an eight-week low of $1,213.81 plumbed on Tuesday.
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