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Web-based cryptocurrency bitcoin stole the spotlight once again,
surging 10 percent to a new record high just shy of $18,000 on
the Bitstamp exchange <BTC=BTSP> ahead of the launch of bitcoin
futures on the world's biggest derivatives exchange operator CME
Group on Sunday.
The greenback had climbed to a one-month high of 113.750 yen on
Tuesday. But it made a U-turn midweek after the Federal Reserve
raised interest rates as expected but also expressed concern
about low inflation.
The dollar lost further ground after two U.S. Republican
senators on Thursday were reported to have sought changes to the
proposed legislation to overhaul the U.S. tax code.
The U.S. currency slipped to 112.18 yen on Friday <JPY=>, down
0.2 percent on the day.
"The dollar is broadly weaker today, with the uncertainty over
U.S. tax legislation the chief driver," said Societe Generale
currency strategist Alvin Tan, in London.
"Also (the) yen is being helped by softer tone in equities."
The tax bill needs a simple majority to pass in the Senate, in
which Republicans hold 52 of the 100 seats, with no Democrats
are expected to support it.
Democrat Doug Jones won the contest for a U.S. senate seat on
Tuesday in Alabama, a Republican stronghold, trimming the
Republicans' already narrow Senate majority.
"In the end the effect will depend a lot on the details of the
final tax bill," said Commerzbank currency strategist Esther
Reichelt, in Frankfurt. "The more the tax bill gets watered
down, the less pronounced the effect will be on the dollar."
The euro edged up 0.1 percent to $1.1792 <EUR=> after losing
about 0.4 percent on Thursday.
The common currency flagged after the European Central Bank on
Thursday raised growth and inflation forecasts for the euro
area, but stuck with its pledge to provide stimulus for as long
as needed.
The New Zealand dollar was the biggest mover among major
currencies, up 0.6 percent at a two-month high of $0.7029 <NZD=D4>
after the country's finance minister Grant Robertson said he was
comfortable with the currency's general trend.
Bitcoin was up a massive 20 percent on the week, though trading
has turned a little less volatile following the start of trading
of Cboe Global Markets' bitcoin futures.
(Reporting by Jemima Kelly; Additional reporting by Shinichi
Saoshiro in Tokyo,; Editing by Catherine Evans)
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