Dollar slides on Trump concern, but stocks rise

The S&P energy index was up 1.1pc along with a jump in oil prices.

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.

An illustration picture shows euro and United States dollar banknotes and coins April 8, 2017. The dollar index, which measures the greenback against a basket of six major rivals including a heavily weighted euro, has fallen around 1.8 percent this week.

The greenback also sank against emerging market currencies, which were dragged lower on Thursday by news that Brazilian President Michel Temer had been recorded offering bribes to silence testimony by a potential witness in the country’s wide-ranging corruption probe.

Brazilian markets cratered on Thursday, with stocks down almost 9 percent and the real 8 percent – the currency’s biggest fall since the 1999 devaluation and crisis, although it looked steadier ahead of the start of local trading.

MSCI’s emerging markets index extended losses by 0.15 percent on Friday.

The single currency hit a six-month high on Thursday and was close to that peak on Friday at $1.1139, up a third of a per cent on the day.

The dollar index, which measures the greenback against a basket of six major rivals, has fallen around 1.6 per cent this week, hitting its lowest since November 9 – the day of the USA election results – on Wednesday and edging back 0.3 per cent down close to that trough on Friday.

“The US 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.

Malaysian shares advanced 0.2 percent and the ringgit was nearly 0.1 percent higher at 4.323 per dollar, after first-quarter gross domestic product grew at 5.6 percent from a year ago, the fastest pace in two years. “While we saw a little bit of a reprieve (Thursday), we’re right back on that dollar weakness train”. Expectations increased that big crude exporters will extend output cuts to curb an inventory glut.Brent crude was up 2 percent at $53.58, while US benchmark crude oil surged 2 percent to $50.34.

Brent crude settled up $1.10, or 2.1 percent, at $53.61, the highest settlement for the worldwide benchmark since April 18.

Brent posted its largest weekly advance of the year, while US crude gained over 5 percent.

US crude futures hit a three-week high, and were last trading up 0.8 percent to $49.76 a barrel.

Benchmark 10-year note yields were unchanged on the day at 2.23 percent, after earlier rising as high as 2.26 percent. Spot gold added 0.25 percent to $1,249.84 an ounce, set to post a weekly gain of 1.7 percent.

“People are still wary of geopolitical risks and not selling the safe-haven asset yet”, said Brian Lan, managing director at gold dealer GoldSilver Central in Singapore.

Japan’s Nikkei reversed early gains to trade 0.15 percent lower, extending declines for the week to 1.8 percent for the week.