Dollar edges up in Asian trade

The dollar edged up on Friday, poised for weekly gains after solid US economic data contrasted with cooling euro zone inflation, though it was set to book losses in the first quarter amid concerns about the direction of US President Donald Trump's policies. The dollar index, which tracks the US currency against a basket of six major rivals, was up 0.2 percent at 100.59, up 1 percent for the week and within a hair of a two-week high of 100.60 hit overnight. It was down 1.6 percent for the first quarter, and 0.5 for the month.
The euro nursed losses, flat on the day at $1.0675 and down 1.1 percent for the week. It was up 0.9 percent for March, and 1.5 percent for the quarter. German and Spanish consumer price data released on Thursday showed inflation slowed more sharply than expected in March as oil prices slumped, offering some respite to the European Central Bank as it faces pressure to wind down its monetary stimulus.
Revised US gross domestic product data on Thursday showed that US fourth quarter growth slowed less than previously reported as consumer spending provided a boost that was partially offset by the largest gain in imports in two years. "The number itself wasn't great but the forward-looking indicators look pretty good," Jennifer Vail, head of fixed-income research for US Bank Wealth Management in Portland, Oregon said about the US figures.
Republicans withdrew their bill a week ago to replace and repeal the Obama administration's Affordable Care Act (ACA) due to lack of support in Congress, raising concerns that Trump's tax reform and stimulus measures might also face legislative challenges.
Trump lashed out on Thursday at Republican conservatives who helped torpedo the healthcare legislation, escalating a feud within his party. Against its Japanese counterpart, the dollar added 0.1 percent to 112.07 yen, after edging up to its highest levels since March 21. It was up 0.6 percent for the week, but down 0.6 percent for the month and skidded 4.3 percent for the quarter.
Sterling edged up 0.2 percent to $1.2481, on track for a slight gain in a week marked by volatile trading as British Prime Minister Theresa May formally triggered the Brexit process. It was up 1.2 percent for the quarter, on track for its first quarterly gain against the dollar for almost two years as accelerating inflation fuelled expectations that the Bank of England was moving towards tightening policy. The dollar rallied 1.3 percent against South Africa's rand to 13.470, its highest since early February, after President Jacob Zuma sacked finance minister Pravin Gordhan in a cabinet reshuffle following days of speculation that has rocked the country's markets and currency. Gordhan was replaced with home affairs head Malusi Gigaba.