The dollar was on the back foot on Friday as squabbling over the US tax bill took its toll on confidence. The euro slipped following the European Central Bank press conference in which Draghi signaled policymakers would maintain stimulus for as long as needed.
The greenback was down almost 0.2 percent lower versus the yen. USD/JPY traded at 112.20 after dropped to an eight-day low of 112.065 overnight. The buck had climbed to a one-month high of 113.750 on Tuesday.
The pair made a U-turn midweek after the Federal Reserve tightened monetary policy as expected but also expressed concern about low inflation. The greenback 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.
EUR/USD was little changed at 1.1790 after dropping almost 0.4 percent overnight.
The single currency was weighed by the European Central Bank’s pledge to provide stimulus for as long as needed despite raising growth and inflation forecasts for the euro area on Thursday.
Cable was in red on Friday against its rivals. Forex traders were left disappointed by the view that interest rates were likely to rise only gradually despite above-target inflation and progress in Brexit talks. GBP/USD was at 1.3425.
