* Dollar set for first week of falls in three
* Greenback gets no help from Mnuchin tax reform comments
* Euro lifted by new French alliance
* Bitcoin hits all-time high
* Graphic: World FX rates in 2017 tmsnrt.rs/2egbfVh
By Jemima Kelly
LONDON, Feb 24 The dollar slipped on Friday and
was set for its first week of falls in three, after the new U.S.
finance chief poured a little cold water on the "Trumpflation
trade" that had taken the greenback to 14-year highs earlier
Treasury Secretary Steven Mnuchin said on Thursday that any
steps that U.S. President Donald Trump's administration takes on
policy would probably have only a limited impact this year,
though he wants to see tax reform passed before by August.
The comments -- made in his first televised interviews since
taking office last week -- suggested that much work was still
needed on key elements of the sweeping tax reform plan, which
Mnuchin called his "No. 1 priority".
The dollar fell on the comments and was trading down 0.2
percent against a basket of other major currencies on Friday at
100.82, leaving it slightly down on the week.
"Mnuchin's comments were less belligerently reflationary
than they could have been, in a dollar strength context, and
that probably did much of the damage (to the dollar)," said UBS
Wealth Management currency strategist Geoffrey Yu, in London.
"But ultimately outside of the U.S. there is reflation
happening and data is looking strong, so perhaps it’s time to
just take some dollar longs off the table... We need additional
information to sustain (the 'Trumpflation trade')."
The dollar was also knocked earlier in the week after
minutes from the U.S. Federal Reserve's latest policy meeting,
which were less hawkish than some investors had expected.
The minutes showed many policymakers felt it was appropriate
to raise interest rates again "fairly soon", but many saw only a
"modest risk" that inflation would increase significantly and
that the Fed would "likely have ample time" to respond if price
"There seem 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 Helena, Montana.
The euro was off this week's six-week lows at just above
$1.06, lifted by a new alliance between French presidential
candidate Emmanuel Macron and fellow centrist Francois Bayrou,
which helped French 10-year government bond yields to their
biggest weekly falls in two months.
Digital currency bitcoin hit a record high of $1,220 in
Asian trade on speculation that a bitcoin ETF is set to get
approval from the U.S. regulator, before edging back to trade at
around $1,170 by 0835 GMT.
For Reuters Live Markets blog on European and UK stock
markets see reuters://realtime/verb=Open/url=http://emea1.apps.cp.extranet.thomsonreuters.biz/cms/?pageId=livemarkets
(Additional reporting by Tokyo markets team)