Dollar heads for flat week as inflation trade revives

The dollar recovered more ground against a basket of currencies on Friday, catching up with rises in U.S. stock markets and bond yields as the trade on U.S. President Donald Trump's growth policies moved back to pole position in investors' thinking. The 4 percent fall in the dollar in the three weeks from Jan. 3 was a reflection of doubts about how the new president’s policy mix will play out for the currency, particularly after both Trump and Treasury Secretary nominee Steven Mnuchin hint