United States dollar has worst week in over a year amid political uncertainty

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But it fell back on technical selling and a stronger dollar to close 0.2 percent lower. Besides worries surrounding Trump, the USA currency has suffered from a resurgent euro, which has gained more than 2 percent this week."The dollar overall, across the board, has been getting beat up this week and a lot of that has to do with the political risk here in DC", said John Doyle, director of markets at Tempus Inc in Washington.

US crude rose 2.15 percent to $50.41 per barrel and Brent was last at $53.71, up 2.29 percent on the day.

"While U.S. markets managed to stage a moderate recovery with investors finding good entry points after the heavy sell-off, Asian investors are likely choosing to err on the cautious side, especially with multiple event-risks in the week ahead."These events include testimony by former Federal Bureau of Investigation director James Comey at a Senate hearing and an OPEC meeting in Vienna, she added". The S&P energy index was up 1.1 percent along with a jump in oil prices.The U.S. dollar slipped 0.7 percent on Friday and was down about 2 percent for the week, its worst week since April 2016.

The euro extended its gains against the USA dollar on Friday, closing 0.87 percent higher on the day at 1.12056.

Brazilian markets plunged on Thursday, with stocks down almost 9% and the real 8% - the currency's biggest fall since the 1999 devaluation and crisis, although it looked steadier in European trading. "While there could be a meaningful dollar recovery on the horizon, the short-term picture still suggests room for a little more weakness", said Joel Kruger, a strategist with LMAX Exchange in London.

Including Friday's losses, the U.S. Dollar Index (DXY) sustained losses of more than 2 percent this week.

Elsewhere, US politics remains the big story.

The FTSE 100 shrugged off a strong pound to rise 34 points, or 0.5%, to 7,471, clawing back some of yesterday's losses and on track for its fourth week of gains.

The US dollar moved broadly lower after a report that a senior White House adviser is a person of interest in the investigation into possible coordination between the Trump campaign and Russian Federation.

The US dollar bought 111.30 Japanese yen, lower than 111.55 yen of the previous session.

The U.S. political uncertainty also put a shine on gold.

The Dow Jones Industrial Average rose 141.82 points, or 0.69 percent, to 20,804.84, the S&P 500 gained 16.01 points, or 0.68 percent, to 2,381.73 and the Nasdaq Composite added 28.57 points, or 0.47 percent, to 6,083.70.

Benchmark 10-year notes last fell 1/32 in price to yield 2.2346 percent, from 2.233 percent late on Thursday.

Gold rose on Friday and was on track for its best week in five as the dollar softened on political turbulence in the United States, boosting bullion's safe-haven appeal.

Global benchmark Brent was up 0.7 percent at $52.88, after touching a four-week high earlier in the session. It climbed to $1,248.62/oz and was set for a weekly gain of 1.6%, which would be its best since April. US benchmark crude oil rose 98 cents to $50.33, the highest close since April 19.