The dollar index (DXY00) on Friday rose by +0.04%. The dollar recovered from early losses on Friday and moved higher after President Trump expressed reluctance to nominate Kevin Hassett as Fed Chair. Hassett was seen by markets as the most dovish candidate, so nominating someone like Kevin Warsh, a known hawk, would be dollar supportive. The dollar also found some support on the stronger-than-expected US Dec manufacturing production report.
The dollar on Friday initially moved lower as the yen rallied on hawkish comments from Japanese Finance Minister Satsuki Katayama, who said the Japanese government was ready to take "bold action" to stop the slide in the yen. The dollar fell to its low on Friday after the Jan NAHB housing market index unexpectedly declined.
