Khaberni - The dollar declined on Friday and is on track to record a weekly decline against the euro and yen after concerns about the deterioration of the U.S. fiscal situation led investors to seek safe havens.
After Moody's downgraded its rating of U.S. debt last week, investors' attention this week has been focused on the tax bill introduced by U.S. President Donald Trump, which could add trillions of dollars to the government debt.
The House of Representatives reluctantly approved the bill, which Trump described as "big and beautiful," and it is now heading to the Senate; where it is likely to take weeks of discussions.
The dollar index, which measures the performance of the U.S. currency against six other currencies including the yen and euro, is poised to fall 1.1% this week, although it remained virtually unchanged at 99.829 in early Asian trading.
The euro rose 0.21% to $1.1303 in early trading and is on track for gains of 1.2% during the week.
The yen stabilized at 143.84 to the dollar and is also headed for an increase of 1.2% over the week, following data showing that core inflation in Japan in April rose at the fastest annual pace in more than two years, increasing the likelihood of another interest rate hike before the end of the year.
The Swiss franc rose slightly to 0.8272 against the dollar and is on its way to rising 1.2% this week after two weeks of losses.
The Australian dollar is set to end the week and month broadly stable against the dollar. In the latest trades, it reached $0.6422.
The New Zealand dollar rose 0.2% to $0.59095 and is set to record a modest rise over the week.
