Early trade in NY: Dollar continues slump

The dollar fell to a five-week low on Friday, remaining under pressure for a third straight session after the Federal Reserve quashed hopes for a further bull run in the currency by keeping a gradual pace to its monetary tightening policy. "At the moment, the dollar remains in correction mode, which we had fully expected," said Fawad Razaqzada, market analyst, Forex.com in London. "But we remain fundamentally bullish on the greenback because the Fed remains the only major central bank which is actively tightening its policy."
The dollar also struggled against the yen, dropping to two week-lows, and Razaqzada said the currency pair remains in a "technical correction phase."
He noted though if the dollar is to break out of its mini-slump, it could do so against the yen as the Bank of Japan is nowhere near ready to tighten monetary policy.
In late morning trading, the dollar index, which measures the greenback against a basket of six major rivals, slipped 0.1 percent to 100.25, after earlier falling to a five-week low.
The index was down almost 1 percent overall for the week and 1.2 percent since the Fed hiked rates on Wednesday.
Against the yen, the dollar fell to a two-week low and last traded down 0.5 percent at 112.74 yen.
The euro, meanwhile, fell against the dollar after a poll showed far-right anti-EU leader Marine Le Pen extending her lead over centrist Emmanuel Macron in the first round of France's presidential elections.
The Opinionway poll also showed Le Pen, who has pledged to take France out of the euro, narrowing Macron's lead in the second round run-off.
The euro was down 0.1 percent at $1.0751 After two days of gains against the dollar.