* Greenback gets no help from Mnuchin tax reform comments
* Sterling poised for winning week as political woes hit
TOKYO Feb 24 The dollar clawed back some ground
on Friday after skidding to a two-week low against the yen, but
was still on track for weekly losses after the Federal Reserve
meeting minutes disappointed dollar bulls.
The greenback inched 0.1 percent higher to 112.76 yen
but was just off a two-week low of 112.55 plumbed overnight and
down 0.2 percent for the week.
The dollar failed to shrug off pressure from the Fed minutes
released on Wednesday, which were more dovish than some market
participants had expected.
"Market participants were still digesting the FOMC minutes
from the January meeting, and there seems to be two different
camps in the reading of those minutes - whether they introduced
a more hawkish tone, or a more dovish tone - and it appears the
doves are winning that battle," said Bill Northey, chief
investment officer for the private client group at U.S. Bank in
Also weighing on the dollar were new U.S. Treasury Secretary
Steven Mnuchin's remarks in his first televised interviews since
taking office last week. He told Fox Business Network that any
policy steps the Trump administration takes would likely have a
limited impact this year.
Mnuchin told CNBC that he wanted to see tax reform passed
before Congress' August recess, a basic timeline that fit many
investors' expectations but disappointed those hoping for more
rapid reform and fuller details.
"It's been one month now since Trump became U.S. president,
and we're still waiting to see what he can do, particularly on
tax reform," said Kaneo Ogino, director at foreign exchange
research firm Global-info Co in Tokyo.
"In the meantime, no one wants to bid up to buy dollars, and
it all depends on U.S. interest rates, which are still soft-ish,
so the dollar is still sagging," he added.
The yield on 10-year U.S. Treasuries fell to a two-week low
of 2.372 percent overnight and was last at 2.375
percent, below Thursday's U.S. close of 2.388 percent.
The euro was off this week's lows but remained pressured by
fears about anti-European Union rhetoric from French
presidential candidate Marine Le Pen ahead of the first round of
French elections on April 23, with the second round to come in
The euro was on track to shed 0.2 percent for the week
against its U.S. counterpart, but was steady on the day at
$1.0582, well off this week's trough of $1.0494 hit on
Wednesday, which was its lowest since Jan. 11.
The euro's struggle gave sterling a tailwind. The pound
stood at $1.2550, up 1.1 percent for the week.
"We would not be surprised to see GBP/USD retrace to 1.25
but breakouts after long periods of consolidation tend to have
continuation," wrote Kathy Lien, managing director at BK Asset
The dollar index, which tracks the U.S. unit against a
basket of six major peers, edged down 0.1 percent to 100.970
, nearly flat for the week.
(Reporting by Tokyo markets team; Editing by Richard Pullin and